Setup can't continue because Outlook isn't configured to have a default profile. Check your Outlook settings and try again.

I have Windows 7 Home Prem, 64 Bit, MS Office 2010 Professional Plus 64 Bit, iTunes 10.5, IOS 5.0.1 on 2 iPhone 4s and an iPad2. I can turn on Photo Stream, Bookmarks and Outlook in iCloud Control Panel. I can not turn on Calendars or Contacts. I get the error in the subject of this msg.
I have configured the Outlook PROFILE 6 different ways and it still does not resolve the problem.

What I did was install iCloud again - uninstall it properly so everything goes - reinstall iCloud in a separate directory and finally it worked.  This may be all you need to do - but in case there are other things I did that helped see below.
This was after I had actually installed and reinstalled Outlook.  In between I actually upgraded from 2010 to 2013 Outlook which I installed, uninstalled, reinstalled, repaired - as you have done.
I also absolutely cleared the Outlook calendar to remove not only repeating entries but all entries - put it in List View to do this.  Some have said that recurring entries in Outlook cause problems.
I actually exported my Outlook email and imported back in under a different profile and deleted the Outlook profile - renamed my new profile Outlook - but that I don't think made much difference.
I believe that the clean install of iCloud worked.  Also I had deleted the Sync file long ago - you can find it in Outlook if you look for your data files  - there's one with an obscure name - I deleted that and moved it.
I got rid of the Outlook Config file - it's in Roaming, not Local - username/AppDat/Microsoft/Outlook/YOURPROFILE.XML - you can actually set profiles from the Control Panel if you go to Mail....

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