Here is the final report.
Blackberry Desktop Manager 4.2 OTW (over the wire

) synchronization with Zimbra Outlook connector via Microsoft Outlook 2003 does work.
We had a configured laptop system using a Palm Tunsten for synchronization with Outlook. That setup was crashing the sync software every time the sync took place. I have a lengthly work log I can post if anyone is interested.
I guessed that the remaining configuration and driver changes could have been causing problems so I did the following:
- Removed Blackberry Desktop Manager
- Remove Zimbra Outlook Connector
- Removed MS Outlook 2003
- Reinstalled XP Service Pack 2
- Reapplied all MS XP SP2 updates
- Installed Microsoft Outlook 2003 (with the other office apps)
- Applied all MS Office updates
- Tested Office Apps
- Setup Outlook for IMAP connectivity to Zimbra (as a test)
- Created a couple of address book and calendar entries (testing)
- Installed Blackberry Desktop Manager 4.2
- Tested Basic Sync (works)
- Setup Outlook syncing to Blackberry (my test appointments and address enteries sync)
At this point Outlook 2003 and Blackberry Desktop Manager are syncing. BDM is getting its data from "Personal Folders\Calendar" and "Personal Folders\Contacts".
Next:
- Install Zimbra Outlook Connector.
- Configure and allow to sync all data.
- Go back into the synchronize configure tab in BDM 4.2.
- Select Calendar and configure.
- Select Outlook and then options.
- Change your profile from Outlook to Zimbra.
- Do the same for Address Book.
Its possible that I could have skipped the step of getting the BDM to synch with outlook before installing the connector. This process worked for me.
Jason