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.