I've tested the extension and it works just fine. If you have a previous version of Chrome, then go to Chrome's Menu > Settings > About. Once you activate this, the update check will start. If there are any updates, make sure to apply them, then reinstall the extension.
Secondly, Outlook needs to be set up as the default email program. Go to Start > Control panel and use the Search function to look for Default Programs. Assign Outlook as the default email program. Once you use the Email link in Chrome, Outlook will open and create a new email with the link and subject attached.