Vista - Windows Mobile Device Center doesn't sync with MSN Premium Accounts using Outlook Connector

Windows Mobile Device Center doesn't sync with MSN Premium Accounts
using Outlook Connector:

My upgrade to Vista was going well until I came across this.

I have an MSN Premium account which I access using the Outlook
Connector through Outlook 2003. I sync this up (mail, calendar,
contacts) with my smartphone using ActiveSync 4.x and a USB
Connection.

Everything worked great and I had an integrated mail, calendar,
contacts solution accessible from my smartphone, windows live mail and
outlook.

I migrated to Office 2007 and Vista I installed Outlook Connector for
my MSN Premium account. I set the MSN account to be the default in
Outlook 2007, removed the 'personal folders', and then ran Windows
Mobile Device Center. Everything appears to run ok however when I try
sync I'm told there is an error - no more detail. (It appears to not
find the default *.pst/*.ost file)

If I remove the MSN Premium account and set the 'personal folders' to
be the default account then the sync will work.

What I expected was to be able to continue using my MSN Premium
account in Outlook and easily sync all the mail, contacts and calendar
with my smartphone easily using sync features.