Hello Richa,
Been some time since I dealt with that issue. If I recall correctly in the end I just broke down and switched that single user to another machine that was cleanly imaged. Since it was just that single person who had that issue and no one else did. Which obviously fixed the issue since it was a fresh clean machine.
Also some other things to keep in mind that I discovered dealing with the CRM 4.0 Client. Is if you are dealing with Windows 7 users do the installation as the account that will be using the client. So granting local admin rights to that user temporarily for the install. Then removing local admin once you’re finished the install of the client. As users would run into random problems where the client would disable it’s self in outlook for no reason when installed as a different account. Likely a result of how Windows 7 works with programs vs Windows XP and later when CRM 4.0 was originally programed for.
Nicholas