New Vista "Windows Mobile Device Center" problems

Just downloaded the new version of the mobile device center (via Windows Update), and now I finally get the option to sync my PDA with Outlook.

Only problem now is that I want to sync my Inbox, Calendar, and Contacts, but it says that Outlook hasn't been set up. IT HAS!!!!!!!!!! I have even rebooted the PC just to be sure. I can receive email from my POP3 account (don't have this set up for Exchange yet), and everything works fine (it syncs my mobile favorites, etc...)

HELP!!!!!!!!!!!!!!!!!