Here is the fix for the same:
1-Locate the Outlook Temporary Items folder by opening the Registry and locating HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Sec urity\OutlookSecureTempFolder Navigate to the value of this Key. It should be something like: %USERPROFILE%\Local Settings\Temporary Internet Files\OLK3D\ where OLK3D is some randomly generated string that always starts with OLK
2-Quit Outlook
3-Delete the contents of the folder
4-Launch Outlook