I get this GpgOL error every time I start Outlook 2003 on my WinXP SP3 dell
laptop. If I wait until the Kleopatra Icon is displayed then it will start.
If I try the retry option before the Kleopatra icon is displayed then I get
the same dialog box.

As of note I was working another icon issue with MS Security Essential and I
discovered with no anti virus program installed I did not get this dialog box
and everything started normally!

Recommend looking into the time it takes for Kleopatra to start and finish it
process before Outlook starts.