Outlook 2010 ...messaging interfaces returned unknown error... cannot resolve recipient. When replying

There is a link with someone else who was receiving the same error, but i believe for different reasons.

http://social.technet.microsoft.com/Forums/en-US/outlook/thread/43221dbf-60e1-4afb-8c25-f23f06deed3e

I just performed an upgrade from office 2007 enterprise to office professional plus 2010 today (I am running Windows 7) and I keep getting this error:

Microsoft Outlook
The operation failed.  The messaging interfaces have returned an unknown error. If the problem persists, restart Outlook. Cannot resolve recipient.
P1: 300531
P2: 14.0.4763.1000
P3: 6xk3
P4: 0x80040700

It happens when I reply to an email.  The addresses are in the format which outlook 2003 and 2007 have been using

Webb, Sydney A <user@domain.com>

I notice that if I simply type the address:

user@domain.com

it will send fine.

I also notice, the format for contacts has changed to Webb, Sydney A (user@domain.com)

() instead of <>

i assume that is what is causing the issue, but all of my incoming emails are marked with the old style, so when I hit reply I have to retype the addresses every time(even for the same contact on following email replies).  I am sending via POP3(gmail account in PST is default), but I do have an exchange account configured which I occasionally connect to.

any ideas on how to change the incoming format of messages so the sender's address is in the new format?

I would greatly appreciate any help.