Offline Client Cached Mode Wizard Error "Work wasn't complete successfully. MAPI error: Access is (4264623)

Error in Offline Client Cached Mode Wizard:

Work wasnt complete successfully.
MAPI error: Access is denied.

Unicode PST creation has been disabled. This problem occurs if the newPSTFormat registry value has been set to 3 (Enforce ANSI creation).

Windows Registry Disclaimer:
Quest does not provide support for problems that arise from improper modification of the registry. The Windows registry contains information critical to your computer and applications. Make sure you back up the registry before modifying it. For more information on the Windows Registry Editor and how to back up and restore it, refer to Microsoft Article ID 256986 Description of the Microsoft Windows registryhttp://support.microsoft.com/default.aspx?kbid=256986.

Registry value newPSTFormat can be used to specify the format of new PST creation. The newPSTFormat DWORD value can have any of the following settings:
0 - Default Unicode
1 - Default ANSI
2 - Enforce Unicode creation
3 - Enforce ANSI creation

Run Registry Editor, check the newPSTFormat registry value under the following registry subkey. If it has been set to 3, remove the newPSTFormat registry value or change it to a different value.

Outlook 2003
[HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\]

Outlook 2007
[HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Outlook\]

If Office Administrative Templates have been used, check option Preferred PST Mode (Unicode/ANSI) at the following location in group policy. If its been set to Enforce ANSI PST, disable this optionor change it to others.

Office 2003 Administrative Templates:
User Configuration | Administrative Templates | Microsoft Office Outlook 2003 | Miscelaneous | PST Setting

Office 2007 Administrative Templates
User Configuration | Administrative Templates | Microsoft Office Outlook 2007 | Miscelaneous | PST Setting

The group policy will set the newPSTFormat registry value under the following registry subkey on workstation.

Outlook 2003
[HKEY_CURRENT_USER\Software\Policies\Microsoft\Office\11.0\Outlook]

Outlook 2007
[HKEY_CURRENT_USER\Software\Policies\Microsoft\Office\12.0\Outlook]