CRM 2011 Outlook client cannot connect to Microsoft Dynamics CRM server cannot authenticate your credentials on Windows XP

While trying to configure the CRM client for Outlook on Windows XP you get the error: “Cannot connect to Microsoft Dynamics CRM server because we cannot authenticate your credentials. Check your connection or contact your administrator for more help.”

First make sure that the time is synchronized with the time on the CRM server. Go to the following link for instructions on setting the time

Then you have to follow these steps:

1. Close Outlook
2. Remove Windows Live ID Sign-in Assistant
3. Install Windows Identity Foundation for Windows Server 2003 from here:…
4. Reboot computer
5. Open Outlook and configure ORG as normal