Microsoft Dynamics CRM 2011 Outlook Client failed to install due to Microsoft SQL Server 3.5 Service Pack 2 failed to be downloaded

With the latest integration between Office 365 and Microsoft Dynamics CRM online services, I have been experiencing a few different installation and connectivity issues.  Today’s issue was originally related to unable to Get CRM for Outlook from the Online notification bar.  When I click “Get CRM for Outlook” button, it pops up a page with url http://go.microsoft.com/fwlink/?LinkID=194222&clcid=0x409 and I had Internet Explorer cannot display the webpage error.  So I decided to download and install the Outlook client manually.  (I am setting up a new CRMOnline demo for a client, hence have to go through this process again)

To download the CRM for Outlook client, I use this link http://www.microsoft.com/en-us/download/details.aspx?id=27821 

During the installation process, I experienced the following error:

The installation has failed.  Microsoft SQL Server Compact 3.5 Service Pack 2 did not download successfully.  To try again, ensure your internet connection is working, then try again.  Click the link below to view the log file.

I decided to download and install it manually.  To download the installation file, I use this link http://www.microsoft.com/en-us/download/details.aspx?id=5783 . 

During installing SQL Server Compact 3.5 SP2, I have the first warning screen.

Warning – On a 64-bit Computer, install both 32-bit and 64-bit versions of the SQL Server Compact 3.5 SP2 MSI files. Existing SQL Server Compact 3.5 applications will fail if only the 32-bit version is installed on the 64-bit computer.  Developers should chain both the 32-bit and the 64-bit MSI files with their applications and install both of them on the 64-bit Computer.  See Install.txt file for more information.  Click ‘Yes’ to Continue.

I clicked ‘Yes’, then continued installation, all went well!  Then I need to configure the Outlook client.  When the Configuration wizard pops up, I selected Server URL to be CRM Online and click test connection, I experienced this error:

Cannot connect to Microsoft Dynamics CRM server because we cannot authenticate your credentials.  Check your connection or contact your administrator for help.

I clicked OK to continue.  Then a login screen pops up.

I input my registered Office365 user name and password, then I see a better confirmation screen

I clicked OK and finally saw a better promising screen.

There is always new experience everyday with CRM!