The exchange server which you have connected may not have the replica of the folder. Either add the server which you are connecting to the replica list of the folder or right click on the Public Folders and select connect to option to connect to the specific server where the public folder is hosted and set the permission.
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by: JWCastilePosted on 2009-08-24 at 08:56:52ID: 25169607
When you go to the Properties page and click on the Replicas tab, what do you see? If it's empty, add your Exchange server into there.