HT4796 Error 0x80007114 Outlook Express cannot be started.

Window Migration Assistant fails immediately with the above error.  OE runs fine on the PC.

Here is what I am trying to do:
Windows Migration brings the following information from your Windows  PC (Windows XP SP3 or greater) to your Mac:
Email: IMAP and POP accounts from Outlook, Outlook Express, Windows Mail and Windows Live email accounts are transferred to Mail. Email metadata such as read, replied, and flagged are transferred from Outlook, Outlook Express and Windows Mail to Mail in OS X.
Contacts: Outlook and Outlook Express contacts, and Windows Contacts from the Contact home directory are transferred to Address Book.
Calendars: Outlook calendars are transferred to iCal
iTunes library, including music, photos, videos and apps and  games for iOS devices, except rentals
Home directory folders and content, including Music, Pictures,  Desktop, Documents, and Downloads
Browser bookmarks and homepage from Internet Explorer, Firefox,  and Safari are transferred to Safari
User settings including localization, locale, and any customized  desktop picture
The problem is obviously somewhere on the PC side since the Windows Migration Program fails on the PC but I am starting with questions here because surely someone in the Apple community has seen this problem and has a solution. 
This is the first thing I have tried on my new Mac (first time Mac user) and it failed.  Not a good start Apple!!
The full error on the PC side is "Outlook Express could not be started.  Unable to initalize store directory.  Out of memory or disk full.  (0x80007114)"  SInce OE runs fine on the PC, I have no idea what this means or how to get around it.
Any ideas/help would be appreciated.  I really would hate to have to go to MS with this question...

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