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CRM 2011 & MS Outlook 2010 - Quick Campaign Email Activities not created using E-mail via Mail Merge

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When creating a quick campaign using the E-mail via Mail Merge, only the first contact in the marketing list has an e-mail activity created within CRM. For every other contact in the marketing list, we receive the error message in Outlook

'An error occurred promoting this item to Microsoft Dynamics CRM. The Microsoft Dynamics CRM server could not be contacted or the user has insufficient permissions to perform this action. Do you want to send the e-mail? If you click Yes, the e-mail will be sent out, but no corresponding activity will be created in Microsoft Dynamics CRM.'

Clicking 'Yes' does send the marketing e-mail out correctly, but, as the message states, no e-mail activity is created.

When looking at the Quick Campaign afterwards, all but the first contact in the marketing list are listed under 'Contacts Excluded' with the following reason and reason ID:

'This account, contact, or lead has refused communication of this type' - '0x80040325'

The e-mail for the user (who is a System Admin) is being sent via MS Outlook rather than an E-mail Router.

We have checked that the Contacts have all Contact Methods set to 'Allow' and Send Marketing Materials set to 'Send'. This is shown by the fact that the Contacts appear as normal in the list of Mail Merge Recipients when MS Word is opened.

We have tested using Marketing Lists made up with brand new 'test' Contacts and the same behaviour occurs. We have not been able to reproduce this on a different deployment, using the same procedure.

If anyone has any further suggestions for how to resolve this issue, we would be very grateful.

Thanks in advance,

Rob


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