Since I installed this update, I have been unable to receive POP3 email from 3 accounts at Verizon.net. The incoming mail failed with an error 0x80042108. The outgoing appears to be fine. I also have an MSN (MAPI) account with Outlook Connector which has not had any problems.
If I turn off "Scan Incoming Email Messages" in NIS, the problem goes away.
I am running Outlook 2007 on a Windows 7 Professional (Release to Manufacturers) dual boot machine. I tried this on my other partition, a Windows 7 Release Candidate with Outlook 2010 Technical Preview, but no NIS, and I had no problem.
I also check a different PC with the previous version of NIS, Outlook 2007 and Vista Home Premium SP2 and had no problem accessing my verizon.net email.
I have turned my Incoming Email Scanning off until I see a response to my posting that the problem has been resolved.
Apparently, there have been a lot of problems with this particular patch - hopefully they will be cleared up in short order.