Thank you very much. I actually run TB on two machines and thought I had installed the 64 bit version on both... Well as it turns out, I only had installed it on one. --- stupid me.... Now that I actually have the 64 bit version installed every thing is working as expected with outlook integration.
My version of a best practice is to associate a outlook folder with a thought in TB, versus lots of individual emails. If anyone has other experiences on best practices, posting those would be great