Not Well-Formed at Byte Index 996 error while connecting outlook to salesforce.

Hi,

I installed Microsoft Outlook version 3.2.111 from my Salesforce Org. Im using Windows XP and Outlook 2003.

when im trying to connect Salesforce Sandbox by providing my login details through Tools->Salesforce Options->General.

When I click verify, Im getting the following error

Not Well-Formed at Byte Index 996. Failed to login Salesforce.

Im I missing any settings.Not sure what might be the problem??

Any pointers will be of great help.

Thanks in Advance.

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