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Microsoft Office Outlook: Unable to display the folder. The contacts folder could not be found

I have a user Jane she has a contacts that she needs to share out to people.  Jane uses outlook 2k7 and is able to share with user Bob just fine.  User Bob has outlook 2k7 also.  When Jane addes user Cathy, who uses Outlok 2k3, Cathy gets the following error: " Unable to display the folder.  The contacts folder could not be found".  I have removed and readded user Cathy from Jane's shared contacts and no change.  I added my network support user to Janes shared contacts and get the same error as user Cathy.  I do not currently have another Outlook 2k7 client to test with.
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Yes sorry this is an Exchange 5.5 enviroment.
Try the exchange analyzer possibly a MAPI permission error on the server.  

http://technet.microsoft.com/en-us/exchange/bb288481.aspx

I don't remember in 5.5 but if the following is not there and or disabled I had issues. (normally the 2003 client could not connect at all but worth a look)
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\MSExchangeIS\ParametersSystem
Value Name: Disabled MAPI Clients
Value Type: REG_SZ
Value Date: -6.4.9999

Any errors in the Event Viewer when she connects to the calendar?