Outlook Out of Memory Message with Calendar Time Zone change

I have a user that keeps getting the the following message when Outlook 2007 is opened.

"A Change to '(UTC-05-00) Easter Time (US & Canada)' has occurred. Appointment, meetings, and reminders will be updated to reflect this change. For meetings you organized, an email update will be sent to the attendees. The update ensures that the meeting appears at the correct time".

After clicking on the Ok button the following message appears "Microsoft Office Outlook....Out of memory or system resources. Close some windows or programs and try again".

I checked the settings on the laptop and Outlook and Time Zones are correct. Not sure what is casuing this messages to appear.

Thanks....