CRM 4.0 Outlook Client Error: access is denied

Lately, I have been to a site where almost all Microsoft Dynamics CRM 4.0 Outlook users could not access CRM via their desktop/ Outlook.  Everyone is getting “Access is denied” or “An error has occurred” generic error message when clicking any CRM folder in Outlook. 

After evaluation, I found IE is continuously giving some error similar to this one.

Message: Access is denied.

Line: 49

Char: 1

Code: 0

URI: http://crm/_static/_controls/notes/notectrl.htc

Message: Unspecified error.

Line: 421

Char: 1

Code: 0

URI: http://crm/_static/_forms/controls/img.lu.htc

This error message could be caused by the relocation of CRM Server, SQL Server, Database location, or adjustments to the host header.  The solution to the error is to delete your internet temp files and/or reconfigure your CRM Outlook client.