It finally worked
Outlook Exchange email account issues with Yosemite.
Outlook with iMAP accounts works.
If you create a NEW user account and set up an Outlook Exchange email account - even if it's the same - it works.
After several hours of hair pulling and forum reading this is what I found:
A) Delete your Microsoft Folder in documents (back it up) somewhere, but delete it from the drive - at least you have a copy somewhere
B) Get AppZapper, and do a complete clean install. This means deleting your library related Microsoft plist, preferences, application support folder, anything Microsoft related
C) REINSTALL Office and apply ALL updates to Microsoft Office 14.4.3 - I think.
D) Run DISK UTILITY and repair permissions
E) Then, and finally: add your Exchange account to Outlook
F) I quit the app and reopened and it finally worked.
Good luck...for me this finally worked. I hope it holds up for 1 month and then I can get out of BETA.