Memory/System Resources Error

I am trying to configure MS Outlook 2000 via exchange server on a HP Omni Book with 192 MB and a fresh install of Win98SE. When I go to the mail icon in the control pannel or right click on the MS outlook icon I get the following message.

“You need more memory or system resources, close some windows and try again”

I have 88% of system resouces free and NO other programs open.

Any ideas on this one?