AD creates Exchange 2003 Account but not in System Manager

Recently we rebuilt a Windows 2003 Server. Existing user accounts were recreated using the AD New User Wizard. Part of the process involves creating an Exchange 2003 account for each user. Worked fine and all users have working email accounts including two Blackberry Users.

Several weeks later a new user is set up. AD Exchange wizard creates email account. X400 is created and local domain smtp account is created. Had to manually create the default smtp account for the user.

Went into Exchange System Manager to Mailboxes - no user mailbox for the one just created.

Log on to Terminal Server as new user, profile creates successfully. Run Outlook 2003 and use wizard to create local outlook connection to user mailbox on Exchange server. Check name and system returns with "The name could not be resolved. The name could not be matched to a name in the address list."

Have tried Exchange Tasks for user to delete and create Exchange account - no change. Ran diagnostics but can't see anything in Application Events to suggest anything is amiss with RUS.

Any ideas? Have seen similar issues in Knowledge base but they involve replication between multiple servers - this site has one primary server with Exchange installed on the same system as AD. The only other server is the Terminal Server.

Totally baffled!