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Apparently, this network connection error has been experienced by more than a few Entourage users in Mac OS X. After scouring several forums, it appeared that the few solutions had to do with contacting an ISP and notifying them of the problem. This sounds suspiciously like MS is passing the buck.

I’ve found the problem seems to be fixed by unchecking both the “Send commands to server simultaneously” box and the “Live Sync” box.