Microsoft released an optional update to the Outlook Connector a couple of weeks ago. Late last week they flipped it from optional to mandatory. The upgrade process seems to work fine for Outlook 2010 users but Outlook 2007 users are complaining that the upgrade fails and the old Connector file is not properly removed.
This morning when I started by Outlook 2007 I was prompted to upgrade my Outlook Hotmail Connector. I accepted and ran the upgrade process, agreed to all terms, etc. The upgrade failed with an error message that it could not find the olc.msi file. After closing the window, the message says the install failed because the "older version could not be removed." I tried to uninstall the connector using the control panel but it failed because it could not find the file.
At this point in time, the best advice with installation issues is to use the FixIt tool to remove the old files. Fix problems with programs that can't be installed or uninstalled
As I learn more about the problem, I'll update this post but the fixit appears to fix the problem and allow the Outlook Connector to uninstall, so you can install the update.
Published July 17 2012