Recently I tried to Sync my Outlook 2007 Contacts with iPhone through iTunes and got this error:

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It took me about 3 hours to get rid of this. These are possible fixes for the problem, please don't ask me if they don't work for you because only one worked for me and these are all I found (may be one works for you):

Fix 1

First, disconnect iPhone from your PC and uninstall iTunes.

Tools>Trust Center > Add-Ins. In Manage, Select COM Add-ins and click Go

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Select iTunes Outlook Addin and click Remove

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Install iTunes again

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Now try syncing.

Fix 2:

Try Resetting Sync History in iTunes, goto Edit>Prefrences>iPhone>Reset Sync History>Reset Sync History.
Goto the Info tab in iTunes> sync only calendars> advanced replace calendars on the iPhone, This will replace the calendars on the iPhone with calendars from the computer

Fix 3:

Download and run this Macro https://support.microsoft.com/kb/201089

To permit this macro to run, you may have to adjust the security level setting in Outlook and Word. Follow these steps to verify or change your setting in Outlook and Word:

  1. On the Tools menu, point to Macro, and then click Security.
  2. On the Security Level tab, click either Medium, to allow you to choose whether to run macros or not, or Low, to allow all macros to run without a warning.
  3. Click OK.

When you open the document in Office 2007 make sure outlook is running, click on Options and you will see this window…click Enable this content and click ok.

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Now in New field, you may find this text “IPM.Contact.”, replace it with “IPM.Contact” and click Process Items.

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Fix 4

Install the Outlook Connector for Office 2010, sometimes it works fine if you are using Windows Live Calendar.

…Please do share if anything else worked for you to fix this.