MS CRM 4.0 Can Not Go Offline - Offline Process Stalls

PROBLEM: 
  • You are using MS CRM 4.0 Outlook 07 Client and cannot go offline as the offline process stalls at the point where it says "Waiting for offline database initialization", then throws error "Failed to start or connect to the offline mode Microsoft Database Engine (MSDE) database". 
  • Client is running Vista with Internet Explorer 8 (possibly also IE7) 
  • Server is running Windows Server 2003 family, including SBS2003 with SQL 2005. 
  • None of the rollups fix the problem 


SOLUTION THAT WORKED FOR ME:
Add the user as an administrator in the SQL 2005 server on the client computer:
  • Open SQL Server 2005 Surface Area Configuration on client computer (run under the client's username with administrator privileges) 
  • Click Add New Administrator 
  • Most likely, only one role will be available in the left hand pane, the SysAdmin role for the CRM database. Add role to the right hand pane and click OK. 
  • Run offline process again. 
This process is usually automatically performed when CRM installs but it can sometimes fail.


OTHER POSSIBLE SOLUTIONS:
If this doesn't work, call Microsoft Support, as it could be some hitherto unknown thing that will commit you to an insane asylum if you try to figure it out alone