1. It says: "To add a data file, such as personal folder file, double-click the Mail icon in Windows Control Panel." Did you? What happenend?
That's your outlook.pst file. It could be the Outlook 2007 one interferes somehow. Thinks like that can happen when installing work stuff on a private machine.

2. If it's for work, find the IT-staff and let them handle it. I think they are more qualified than you and me combined.

Kees