When you’re trying to setup the Outlook profile (in Outlook 2003), you can get the error below.

“Your Exchange Server administrator has blocked the version of Outlook that you are using. Contact your administrator for assistance”.

Check, if you are able to setup a profile while using Outlook 2010. If yes, that makes things clear. Quickly check to see whether you have a public folder database in your environment. In most cases, creation of Public Folders solves the problem