Microsoft SharePoint Online - Office 2007 Productivity Integration
Outlook 2007 has the ability to view SharePoint Online files, folders, lists natively, without the need to browse to SharePoint sites. By setting up links to different SharePoint resources you can easily view and track these SharePoint resources within your Outlook 2007 Productivity Application:
Clicking Connect to Outlook instructs Outlook to make a connection to this SharePoint Team Calendar so the Outlook application can pick up and display any new items. This Synchronization/Communication model is two-way, in that you can create items in the Team Calendar either through Outlook or from the SharePoint Web UI.
Once you click Yes above, the SharePoint Team Calendar will be synchronized with the Outlook 2007 application, providing two-way synchronization/communication (ability to create items in either Outlook and/or SharePoint and have those items displayed in both places), as seen below:
This process can be performed in any SharePoint Online List and/or Library.