There's no "C" in what I entered, so how are you getting an error message
that mentions "C"?
If you want to put the explicit path, use this:
"C:\Program Files\Microsoft Office\Office10\Outlook.exe" /c ipm.note /m dlname

Thought I was going Looney! When I Copy-Paste your 1st Path String WITH % into Shortcut Command Line block, the Shortcut app Puts the C: into the Command Line path and then doesn't like, I guess, the %'s being there; So the error msg includes C:.
Your "explicit path" string WithOut %'s DID Finish the Shortcut set-up; Now I get "Cannot Start Outlook. Command Line argument not valid. Verify the switch you are using."
My Dist List name is two separate words (Old Geezers). Presume that's OK- Sorry I don't know how to "verify the switch". I'm Win Me, Outlook 2002 (Office XP) which I should have mentioned if Me is an issue. Apologies to MEG to drag this out but maybe it helps us both.