Things to try if the Outlook CRM Configuration Wizard fails:
- If on Windows 8, ensure that Windows Identity Foundation 3.5 is installed (Programs and Features)
- Ensure that the Microsoft Online Service Sign-in Assistant is installed (for CRM OnLine)
Also try running the troubleshooting wizard at this link http://rc.crm.dynamics.com/rc/2011/en-us/online/5.1_ctp/outlook-troubleshooting.aspx