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Unable to open default e-mail folder and event id 861 failures

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Last Modified: 2008-02-01
I have Exchange 2003 running with about 35 users and everyone is using Office /Outlook 2003 on a simple single LAN network.

Everyone is woking fine except one person. Her Outlook is giving the 'Unable to Open defautl email folder" when Outlook is launched. She can access OWA for her works just fine. Her password and permission is fine and have not changed since when it was working (which is yesterday).
I the domain manager can use the 'Open Other Users Folder' option from my Outlook 2003 and can open her Inbox.

But for some reason she cannot open her own Outlook from her own computer.
I've tried deleting the Outllok profile and re-creating it and it still does not work.

I see in the Event ID 861 for Outlook and also for LSASS failure  in the event viewer.  
I am at my wits end.. please help!!!
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