I have look all over the Internet and have not found the solution so I did some research and found the cause of this phenomenon. When Business Contacts Manager is installed with Outlook 2003 it also installs a SQL Server service that must be running or Outlook 2003 will hang until it times out.
The service name is SQLAgent$MICROSOFTSMLBIZ. Go to Start->Control Panel->Administrative Tools->Services then find the SQLAgent$MICROSOFTSMLBIZ service and start it. Make sure you go to Properties and select it to start automatically so that it gets started when Windows starts. After that Outlook 2003 will not hang.