Microsoft Office Outlook has encountered a problem

Though am using Ms Office since a long time, I recently started using Outlook as mail client. Worked fine for first few hours and started giving me problem, as I mentioned in the title. Everytime I try to access my contacts or trying to open any mail it gives me error sating:

“Microsoft Office Outlook has encountered a problem and needs to close. We are sorry for the inconvenience”

The same thing also happens while sending new mail. It shows me a checkbox and tells me to restart the Outlook. Someone suggested me to run Diagnostic tool and go in safe mode. Well I run the tool but what to do in Safe mode ? Can anyone help me out ?

Most probably the outlook.pst can be the cause for the same. Or could be the bunch of corrupt messages in your inbox. Hence will suggest you to go to Add and Remove Programs and try repairing Ms office.

Thanks for the help Agilent, but I need to ask how to make changes in outlook. What I can see here is a box saying me to change folder and a path to Outlook.SPT. I wanted to delete this PST and create a new one but there is no option for the same. Any more help ?

For creating a new one you will get option under ‘ADD’ for “Personal Folders.PST”. But before you do this you must backup your existing PST and save it somewhere else. You can do this only after closing all office applications.

If you are receiving error "Microsoft Office Outlook has encoutered a problem and needs to close. We are sorry for the inconvenience" on opening any email message on Outlook then it may be pst issue. You should try to repair Outlook 2007 with Inbox Repair tool. This is located as Scanpst.exe in your system.
Just search this tool and locate the erroneous pst file and repair. Your outlook error may be resolved. Best of Luck!