Unable to connect to mail account after "Hide from Exchange address lists" is checked

I noticed this behavior under Exchange 2000, and it appears to be problem for me in Exchange 2003 as well.  If I check the box for "Hide from Exchange address lists" for any user, that user becomes unable to access his or her e-mail account using Outlook 2003 or OWA.  Unchecking the box restores his or her access.

I would assume that this option only hides the user's address from other users.  Why would it block account access altogether?  What's going on?

I have an urgent need for this answer, so I have assigned this question 400 points.
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