Anyway.. I right-clicked on Command Prompt, under Start Programs, Accessories, and Ran as Administrator, from my admin account.
Then I did the following command and then reboot:
secedit /configure /cfg %windir%\inf\defltbase.inf /db defltbase.sdb /verbose





reg add HKCU\Software\Microsoft\Office\14.0\Word\Options /v NoReReg /t REG_DWORD /d 1 





OMG -  I'VE FIXED IT! 
Looking at the event handler, it was showing an error that HKLM/Software/Classes/.msg could not be accessed.
This is how I fixed it:

Using Regedit to locate the key for .msg, when accessing Permissions, I got an error message, but ignored that.  Open the Permissions window, and click on the "Advanced" button.
Then select the "Owner" tab, and set the owner as "Adminstrators". Click Apply and OK.
Close Regedit, and Run Outlook, the Configuration process will run.  Then close Outlook.
Open Regedit again, and locate the same Classes/.msg key.  You should now see a number of sub keys. 
For each sub key  , right click on it to select Permissions.
Click on the "Advanced" button, and then the "Owner" tab, and set the owner as "Administrators", and click Apply and OK.
On the security tab, click on the Add button.  Add "SYSTEM" as a new user, and put a tick next to "Full Control".  Click Apply and OK, and you should then see other users added.
Repeat the above for all sub keys.
Close Regedit, and reboot.

I then found that not only Outlook would run without the configuration loop, but all other applications in the Office 2010 suite also ran properly using all the proper shortcuts in All Programs.






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