The software that comes in the box is not the most current.  Go to
www.blackberry.com and download the most recent communication manager
for the Nextel 7250.  Make sure that the old version that you already
installed is removed completly.  When you go to install the new desktop
manager it should automatically ask you if you want to uninistall the
old verison 1st.  After you have the most current verison installed
reboot the computer and then try to connect and sync.  I would
recommend that if you receive lots of email and you do not have a
server that you use the Desktop redirector or else the webmail site
will get full real fast and you will not get your email until you free
up some space.  You will need to leave your computer on and have
outlook running but once it's working you can see everything that you
send or reply to in outlook as well as syncing all your contacts,
calendar and email.

I got it to work.
I closed Outlook and tried it and it worked.
Thanks