Does it sync with MS Outlook?

No.
The BlackBerry itself syncs with Outlook, either through a manual (USB cable) sync or over the air (BES).

PocketDay is a single place where a lot of PIM data (and other information) can be displayed. It doesn't sync to anything. It simply reads what is already on the BB.

Ok.. So PocketDay WILL read what is in my BB Calender which syncs with my MS Outlook
Is this correct

Yes.

Sweet Thanks

Is there a way to set PD as the homescreen? So I dont have to click on the PD icon to use it everytime?

Go to your utlity settings in PD and choose start on boot

To add to what akosnitzky said:

You need to go into Settings/Utility and set "Start PocketDay After x Minutes" to 1 AND set to start at boot.

If you don't do this other setting, if you ever exit from PocketDay, you'll have to restart it by selecting it from applications, pressing "Y" from the home screen, or (if it's running in the background) picking it from the application switcher.

There are no programs that totally replace this home page.