Exactly as it sounds.
Outlook freezes for a bit, after 5-10 minutes finally displays “disconnected” from Exchange server. Cannot connect, and any attempt to do so will freeze it up again until it finally fails.
No error messages.
The Fix: correct the system time!
Turns out this client’s system time was set to a MERE 40 minutes into the future. Imagine that – it causes Outlook to freeze up when trying to connect to Exchange. You would think a simple error message would be in order, if it were that much of an issue…
Oh well. Just throwing this out there for anyone else who may experience the issue.
Specifically, this was Outlook 2003 connecting to Exchange 2010 via RPC over HTTPS, now called “Outlook Anywhere” … But I somehow doubt that behavior will be any different across Outlook and Exchange versions.
So keep a lookout, it ain’t just Windows Update that suffers from incorrect system time. All the more reason to use the Internet Time Sync feature in D7! 😀