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Exchange 2007 Address Book Issue

I currently have one 2007 Exchange server.  The clients used to be Outlook 2003.  I recently upgraded all clients to Outlook 2010.  Everything seems to be fine until now.  I created a new Distribution Group in Exchange and waited until the next day to see it in the GAL.  My issue is it never appears.  Instead, if I open the address book on a client PC and select the dropdown box, and select ALL GROUPS it IS there.  All my other Distro groups are in the GAL AND the ALL GROUPS list.  

To test I logged into my terminal server (also Outlook 2010) and the group WAS in the correct spot in the GAL.  I believe this is because terminal servers do NOT use Exchange Cached Mode.

To test further, I went to a PC having the issue, and created a new Outlook profile (With Cached mode Still enabled) and the group populated properly as well.

My question is how can I get the group to populate properly WITHOUT creating new Outlook profiles for every user?
3 Solutions
Have you tried to download the address book in send receive?  To to the send/receive tab and under send/receive groups go to download address book.
BSModlinAuthor Commented:
Yes I have... Same result
Check this link

Open EMC, Toolbox, public folder mgmt console. When console comes up, click the connect to...and choose your exchange server. Then Expand System Public Folders. Verify that offline address book exist and below that you should have some DNs for your org.

Next go to EMC, Server config, mailbox. Higlight each mailbox, properties, client settings. Make sure they are pointing to valid default public folder database and OAB.

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BSModlinAuthor Commented:
Looks right to me, but please see the screenshots below and confirm.... EMC PublicFolder Toolbox
When you do download Address Book from Outlook(from where the problem is) do you get any error?
When you create a new user or distribution list I could take outlook up to 24 hours to update it address book.  To force this you Open the EMC go to Organization Configuration Select Mailbox Select Offline Address Book.  Right click and select Update.  If it is distributed by web base as well you will need to run this command after the update Update-FileDistributionService -Identity "Name of public folder Server" -Type OAB
 Give it a few minutes to update then download address book within Outlook.

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