Its an itune issue, somehow it messes up with outlook and icloud control panel.
Use the following sequnce and it will work:
Uninstall icloud control panel and itunes.
Install office 2013.
Install itunes (you ll see the itunes addin in outlook 2013).
install icloud control panel (latest version).
Then you also see the icloud control panel addin in outlook 2013.
Then it should work, just use icloud control panel to sync with outlook 2013.
Ok so am I correct in saying that I have to unistall itunes as well as icloud and then reinstall? I installed itunes/icloud then office 2013? I have unistalled icloud many times and I get a message saying default profile not set when i try to save with mail flagged? If i unistall itunes will it loose all my music and id3 data?