This is an Outlook 2003 issue related to the Outlook Temporary folder (aka OLK folder) being full. Quickest way to resolve is to delete all the temp items.
The folder location can vary from installation to installation. One way to find it is to peek in the Registry.
Open regedit32.exe and navigate to:
Outlook 97 | HKEY_CURRENT_USER\Software\Microsoft\Office\8.0\Outlook\Security |
Outlook 98 | HKEY_CURRENT_USER\Software\Microsoft\Office\8.5\Outlook\Security |
Outlook 2000 | HKEY_CURRENT_USER\Software\Microsoft\Office\9.0\Outlook\Security |
Outlook 2002/XP | HKEY_CURRENT_USER\Software\Microsoft\Office\10.0\Outlook\Security |
Outlook 2003 | HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Security |
Outlook 2007 | HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Outlook\Security |
That key will tell you the location of the folder on your hard drive.