grayed out icons in outlook

[ikonpro]

I am using Outlook 2007 on Win XP.
I can receive emails but the reply, forward, etc icons are grayed out and I can not respond to the emails.
Also the new email icon is grayed out.
So I can receive all emails but can not send or reply to any.
When I go to tools/options and test the account it shows all checks. I get the test Office email fine.
any ideas to check?
Thanks
Ikonpro

 

[ikonpro]

Updated info
when I go to Tools/options or customize those are grayed out also

 

[trussman]

My first question is - Did you register this copy of Outlook 07? I had the same issue with Office 03 on my new computer. I was able to use it for about 3 months. Then after that buttons were grayed out, and we had to purchase a license.