Some progress made and more issues identified.
I have not been able to get Outlook 2010 installed on my PC so continuing with Outlook 2007.
I reset everything and started again - again.
Did a factory reset on the Galaxy, completely removed Kies from my PC. Went to Samsung website and downloaded Kies again - interestingly the version number on the file for Kies hadn't changed but the published date for the app package on the website was more recent than the last time I downloaded Kies. (?)
Installed Kies, connect Galaxy via USB, setup the sync and let it run.
Initial sync worked well - this included Contacts, Calendar, Todo, Notes. Subsequent syncs seem to work well also. Of course, there is a but coming......
Over the past week things with the sync have deteriorated. Issues I am encountering:
* the same contact entry in Outlook AND the Galaxy will be deleted following a sync. It is not the same entry each time but a contact is deleted from both platforms. The contact had not been updated in either Outlook or the Galaxy
* updating contact details in the Galaxy results in an additional entry being created in Outlook - one with the original details and a second with the updated details
* syncing removes the Favourites flag on contacts in the Galaxy. The weird thing is that this is not consistent. Some of my Favourites are no longer Favourites while some of them remain as Favourites. The contact entries which are removed from Favourites varies each time a sync in run. On the last sync ALL contacts had the Favourites flag removed
* I have photos assigned to contact entries in Outlook. These photos are not synced across to the Galaxy
* If I assign a photo to a contact in the Galaxy, the photo is transferred to the contact in Outlook on the next sync. However, at the same time, the sync process removes the photo from the contact in the Galaxy
I continue to be very disappointed that what should be a basic capability for smartphone, does not work.