Ok.. that is how it connects to the old server. Do you know if your account was moved to the new server?
You can either:
log into outlook.com - if the url is outlook.live.com, it's the new server and you should remove the activesync account and add it back using auto account setup (below). It's up to you whether you remove the active sync account before adding it back - if this is your only account and data file, it will complain if you remove the account first.
Or you can just go to File tab in outlook and click Add - then enter your email address and click next (if you don't enter your password twice on the first screen, a dialog will come up and ask for it and it only needs it typed once). if it's on the new server, it will be added as an exchange server account instead of active sync. This will give you a better experience and should eliminate the disconnected message.