Encountered this error during the week when trying to install Google Apps Outlook Sync for a client:
No Microsoft Outlook profiles have been created. In Microsoft Windows, click the Start button, and then click Control Panel. Click User Accounts, and then click Mail. Click Show Profiles, and then click Add.
Which of course, Google’s Sync tool should do automatically when you set it up.

So, after finding nothing on Google helpful, I started poking around and found that Outlook (2010, running on Windows 7) was actually set to run in Compatibility Mode for Windows XP!
Deselecting this option, so Outlook is not running in compatibility mode, fixed the issue and I could then continue setting it up as per normal.
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Great tip. Thanks so much for posting this! It worked for me!!
Thanks so much called Google Apps support and they were looking into the mapi settings. While on hold with them i stumbled upon your site and fixed the problem within minutes myself.
Thanks. That was a fix that was too simple to work, yet it did work! I appreciate it.
This page was the first result from my google search on this error message. Thank you, it worked!
Outlook was working fine then I rebooted the computer and the error you had appeared. A number of updates were applied after the reboot. Can you explain in more detail how to ‘Deselecting this option, so Outlook is not running in compatibility mode, fixed the issue and I could then continue setting it up as per normal.’ as I can’t find where to do this. Many thanks
Oh dude, you this just saved me! I’ve been battling with this for 2 days! All anyone could say was “Create a new profile and it’ll be fine”.
Thanks for taking the time to post this!
Thank you for the fix!!!!