Unable to open Public Folders with Outlook (but works from OWA)

I have an odd error I have not seen before and since my 2007 commands aren't fully tweaked I have to request some assitance.

We recently migrated from Exchange 2003 to Exchange 2007 and have fully decommissioned the old mail server. Unfortunately the new mail server, despite having reported taking over the public folder roles, is not displaying them to Outlook clients internally. Even after creating a brand new profile for a user with rights, Outlook 2007 clients receive the following error when attempting to expand the All Public Folders tree:
"Cannot expand the folder. The attempt to log on to Microsoft Exchange has failed."
Clicking on the All Public Folders folder generates the following error:
"Cannot display the folder. Microsoft Office Outlook cannot access the specified folder location. Could not open the item. Try again."
Attempting to right click and manage properties also fails.

Now here's the kicker. If we log in as the same user in OWA with public folders on, they can see, browse, post to the public folders, edit permissions etc just like normal. It's only when they are using Outlook 2003/2007 that they are unable to view them. This issue affects all clients via RDP, Outlook Anywhere, LAN etc - just not via Outlook Web Access!

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eedleeAsked:
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terminateallCommented:
Did you Migrated Public Folders, If yes How?
Go the Public FOlder management console in Exchange 2007 and check if the Folders has sefl replica added.
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eedleeAuthor Commented:
Relocated using the preferred MS method. Self is added as a replica. As stated, everything works great in OWA but not in Outlook.
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terminateallCommented:
Run EXBPA and check if there is any Critical Error Messages.
Any errors in the application logs on the server?
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eedleeAuthor Commented:
No errors on EXPBA. Address Book and Public Folder values were updated previously to remove the 'DEL:xxx" values left by the old mail server.
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Hilal1924Commented:
It works with OWA because it is being accessed via CAS server. And when Outlook tries to contact it, it is trying via MAPI. Can you use PfDAVAdmin and Syncronize the permissions. I am sure it will work that way.
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eedleeAuthor Commented:
You're defeinitely on target that it's a mapi issue. PDFDAVAdmin reports all is good. Is the "synchronize" you suggest anything other than replication of ACE and DACL?

Ran MFCMapi tool and cannot open the Public Store. Generating MAPI errors such as MAPI_E_FAILONEPROVIDER and MAPI_E_NOT_FOUND
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Hilal1924Commented:
Hi Can you verify which Default public folder database is being accessed by your Mailbox Database. Just make sure your Mailbox Database is pointing to the right Public Folder Database. I remember one person I worked with had a similar issue and we resolved it by modifying the default Public Folder Store on the mailbox Database.


Cheers,
Hilal
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eedleeAuthor Commented:
Did everything I could in regards to the toolsets available to use for 07 but nothing worked. In the end, exported PF via Outlook, used PfDav to export permissions, removed the public folder replica from the address books, and deleted the database. Created new PF database, imported files and permissions from pst and pfdav and everything was back to normal.
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