Outlook 2007 / MS CRM : Access denied error - [0x80070005-0x80070005-0x000508]

Whenever we send any email from the Outlook client (Outlook 2007) & MS CRM the email bounces back undeliverable with the following message: This message could not be sent. Try sending the message again later, or contact your network administrator. You do not have sufficient permission to perform this operation on this object. See the folder contact or your system administrator. Error is [0x80070005-0x80070005-0x000508]. The above error code is "Windows General Access Denied" message. When we...(read more)