How do I set up my MS Outlook 2007?

i want outlook to READ the mail/notes/contacts/etc. on the mail server, but not download it. I want all of the data to remain on the server and not on my local disk. Basically I want to use it as a program that remotely works the webmail. is this possible? thanks in advance for your help. Im running winXP.

would it matter whether its protocol is set for POP3 vs. SMTP?