Well, I finally got it to sync! It seems there was an installation issue with Outlook 2007. I ran the new Office Diagnostic Tool which is located in the Help menu on Outlook and after about 15 minutes, it said out of all the tests it found and fixed one problem, so I thought I would try the sync again, not expecting any success and low and behold - It worked! I just had contacts selected so I then enabled all the other sync options including One Note, many email folders, Business Contact Manager, Mobile Favorites, Mobile Docs, Notes, Tasks, Calendar...
It is syncing now but looks like it is working, I will post back when it is complete and I can verify the data integerity.
It is odd however, that there was an installation problem when Vista was a clean install immediately followed by a clean install of Office 2007. My Outlook data was then imported into the newly created .pst file created by Outlook. Not sure why there was a installation problem here. I had even uninstalled and reinstalled Office 2007 to try to fix the problem. Maybe there is a bug in the installation code of Office 2007 and the Office Diagnostics code catches this but only if the program is run.
One Care is on and the port allowances and program exceptions have been applied as advised elsewhere on this and other forums.
The tip for the solution came from
www.aximusers.com at
Microsoft Garbage
And, humbly said - Thanks Microsoft for providing a diagnostic tool that solved the issue of my various recommended MS software products not working together.
Also, a big thanks to all on this site who have listened, agreed and disagreed and most importantly helped to find a solution!