Found the fix here
http://forums.techguy.org/archive-business-applications/565729-solved-outlook-2007-so-slow.html
I spent 2 hours with Dell Tier 3 support and we can up with the same conclusion. You need to open outlook as an administrator (by right clicking on the exe file in the Office 12 folder). Then, go to tools/trust center/addins. then click on "go..." at the bottom. I would uncheck outlookaddins. That solved all of my problems! To be extra safe, and to maximize speed, I unchecked everything except indexing (which is the only useful one). That solved my problems. Good luck to everyone!!
Make sure Outlook is closed.
Then from the Start button open Computer and go: C\Program Files\Microsoft Office\Office12\Outlook .exe and then right click on Outlook.exe and click run as administrator. When Outlook opens go to trust center (Tools, Trust Center) and uncheck the Outlookaddin box.
Tools
Trust Center
Add Ins
Click GO near Manage: COM Add-Ins
uncheck the Outlookaddin box