Salsa? That's the first time I've heard that one. :|
As an aside, incase you're not aware, you won't be able to "sync your contacts to Outlook then transfer them to WP7" directly. You'll have to sync from outlook to hotmail/gmail/etc and then add that account on the phone.
Are you actually using outlook? If so, what version?
The error message suggests you're not, or, you did setup a different profile to sync with originally.
Are your contacts on your sim card or the phone itself?
If it's the sim card, just pop it in your phone, you'll be able to import the contacts from the people tile. http://www.microsoft.com/windowsphone/en-us/howto/wp7/people/import-contacts-from-my-old-phone.aspx