I have the same problem (Ubuntu Hardy).
Luckily there is a workaround:
the account shouldn't be set up within Evolution. Evolution can be either
closed or open, and from the terminal you should type the command:
/usr/bin/exchange-connector-setup-2.22
By doing that you'll get the "next" tab, and you can type in the name of the
"catalog" server (namely it's an LDAP server).
The name of this server can be found in Outlook, by opening the address-book,
then selecting "global address book", then doing right click on the drop-down
menu and choosing properties: you'll get the server name.
As the bug exist, I suggest not to close it.
** Changed in: evolution-exchange (Ubuntu)
Status: Invalid => New
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Evolution Exchange Connector does not appear to work
https://bugs.launchpad.net/bugs/105052
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