The action cannot be completed. The connection to Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action.

hey guys,

I got same error on my end and now resolved after adding the below key on my registry

Key: HKEY_CURRENT_USER\Software\Microsoft\Exchange\Exchange Provider     
Value name: DS Server     
Value type: REG_SZ     
Value: FQDN of the Global Catalog server

http://social.technet.microsoft.com/Forums/en-US/officeitpropreview/thread/a640dea8-b0fd-4cde-b5ec-2c077171a067