I have repaired permissions; restarted the iMac; launched Outlook; got a message saying the database was corrupt and needs to be rebuilt; rebuilt database; database rebuild fails.

I have also tried to make a new identity from the Microsoft Database Utility only to be told that it can't make a new identity.

iMac, Mac OS X 10.7.5
2.5GHz i5, 8GB RAM

I am now at a loss as to where to go next.