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2007 categories greyed out for another user

Recently upgraded Microsoft Outlook from 2003 to 2007  I have one user that controls e-mails, calendar etc for another user. This user, uses categories - categories Actions>Category>All Categories  the options to the right of this screen (New, Rename & Delete) are grayed out.
This user has Publisher Editor Permissions; Ive changed the permissions to Owner with no luck as well. We are using Exchange 2007 as well, should any permissions be set at the server level?

Any suggestions would be greatly appreciated!
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DEA2008
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On the Exchange 2007 server. I  added full mailbox permissions for the user (secretary) that will be accessing the Mailbox on the other User account (Manager). This gave the user (secretary) full access to the (manager's) mailbox, the categories are no longer grayed out. I hope this helps someone else.

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