I uninstalled ZCO and the profile (since I assumed it was somehow corrupt) and reinstalled ZCO and restarted Outlook.
I enabled logging with "0" for size.
I am tailing the log on the client and the log is quickly growing while the ZDB file is now static at aroun 8.2MB
No email is syncing this time around at least not after 10-15 minutes. The log shows a lot of http errors, but is is still growing- 50MB and counting.
Here is a snipit:
06-11-2009 15:34:14.324 [4556]: *4510*
06-11-2009 15:34:14.324 [4556]: *4510* DEBUG: in Zimbra::Rpc::Connection::ReadResponseFully - Total bytes read from wire: 1438
06-11-2009 15:34:14.324 [4556]: *4510* <<<<-------- HTTP stream End (Response) ----------------------------------------------->>>>
06-11-2009 15:34:14.324 [4556]: *4510* Exit Zimbra::Rpc::Connection:

oGet ...
06-11-2009 15:34:14.324 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. No Req RPC -- local failure tempfile not written
06-11-2009 15:34:14.324 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. No Rsp RPC -- local failure tempfile not written
06-11-2009 15:34:14.327 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. trying write 1468 bytes into C:\Users\jurness\AppData\Local\Temp\Mim-20091106T153414.324-118302.txt
06-11-2009 15:34:14.342 [4556]: SyncSAXHandler:

ownloadCreateMessage() - File download HTTP error 500 on id 118302
06-11-2009 15:34:14.342 [4556]: Zimbra::Sync::SaxHandlers::InitialSyncSAXHandler:: DownloadCreateMessage. the base function failed for mids
06-11-2009 15:34:14.342 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. No Req RPC -- local failure tempfile not written
06-11-2009 15:34:14.343 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. No Rsp RPC -- local failure tempfile not written
06-11-2009 15:34:14.345 [4556]: Zimbra::Sync::SaxHandlers::SyncSAXHandler::WriteSo apToTempFile. trying write 1468 bytes into C:\Users\jurness\AppData\Local\Temp\Mim-20091106T153414.343-118302.txt
06-11-2009 15:34:14.358 [4556]: ERROR: Zimbra::Sync::SaxHandlers::InitialSyncSAXHandler:: StartMessage - DownloadCreateMessage failed to init sync message id(118302)
06-11-2009 15:34:14.363 [4556]: *4511* Enter Zimbra::Rpc::Connection:

oGet ...
06-11-2009 15:34:14.363 [4556]: *4511* <<<<-------- HTTP stream Start (Request) ----------------------------------------------->>>>
06-11-2009 15:34:14.370 [4556]: *4511* HTTP Headers:
06-11-2009 15:34:14.370 [4556]: GET /service/user/~/?fmt=sync&id=118301 HTTP/1.1
Cookie: ZM_AUTH_TOKEN=0_72b8f5d544fff8ae0fd6e3238b9ac81f7e 2ad644_69643d33363a34363764393830322d363435302d343 764382d616339362d3231343236393430636532623b6578703 d31333a313235373732323638383930363b747970653d363a7 a696d6272613b
User-Agent: Zimbra-ZCO/6.0.5736.2 (6.1.7600 ; en-US)
Cache-Control: no-cache
Pragma: no-cache
Connection: Keep-Alive
06-11-2009 15:34:14.370 [4556]: *4511* <<<<-------- HTTP stream End (Request) ----------------------------------------------->>>>
06-11-2009 15:34:14.370 [4556]: *4511* <<<<-------- HTTP stream Start (Response) ----------------------------------------------->>>>
06-11-2009 15:34:14.370 [4556]: *4511* DEBUG: in Zimbra::Rpc::Connection::ReadResponseFully - content-length in http response header: 1438
06-11-2009 15:34:14.370 [4556]: *4511* HTTP Headers:
06-11-2009 15:34:14.371 [4556]: HTTP/1.1 500 system failure: sync formatter failure
Cache-Control: must-revalidate,no-cache,no-store
Date: Fri, 06 Nov 2009 23:34:14 GMT
Content-Length: 1438
Content-Type: text/html; charset=iso-8859-1
06-11-2009 15:34:14.371 [4556]: *4511* HTTP body:
<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=ISO-8859-1"/>
<title>Error 500 system failure: sync formatter failure</title>
</head>
<body><h2>HTTP ERROR 500</h2>
<p>Problem accessing /service/user/~/. Reason:
<pre> system failure: sync formatter failure</pre></p><hr /><i><small>Powered by Jetty://</small></i><br/>
I'll attach more, bit it looks like it is looping and won't finish until my hard drive fills up.