Exchange 2010 mail enabled Public folder with forwarding to a distribution group

I am working with a mail enabled public folder labeled as "Quotes".  It has a public email address of quotes@companyname.com.  This had been originally set up with a forward to a single user.  I was asked to change this to forward to a distribution group, simple enough.  I created a Distribution group "Quotes Recipients", enabled unauthenticated sending to the group, set the forward within the public folder to forward to this distribution group, delivering to the folder and then to the forwarding address.  This is working, HOWEVER every time you send to this address, internally or externally, you get a bounceback from exchange.  Please note, the message does get delivered correctly, just everyone gets a bounceback.

Delivery has failed to these recipients or groups:

quotes@companyname.com
There's a problem with the recipient's mailbox. Please try resending the message. If the problem continues, please contact your helpdesk.

Diagnostic information for administrators:

Generating server: companyname.com

quotes@companyname.com
#< #5.2.0 smtp;554 5.2.0 STOREDRV.Deliver.Exception:ObjectNotFoundException; Failed to process message due to a permanent exception with message The Active Directory user wasn't found. ObjectNotFoundException: The Active Directory user wasn't found.> #SMTP#
cpserviceAsked:
Who is Participating?
 
davorinCommented:
Obvious it is a FP problem.
Have you ever had exchange 2003 in your organization?
Take a look at this article:
http://social.technet.microsoft.com/Forums/en-US/exchangesvrgeneral/thread/e8e78736-be67-4e4a-b929-2c3ce61e0eb6
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davorinCommented:
Who are the members of distribution group?

I would turn around things a little bit.
I would setup distribution group with email address quotes@companyname.com and set up public folder and all other necessary user mailboxes you need to deliver to as members of distribution group.
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cpserviceAuthor Commented:
oh wow... did not even think of that.  flipped it around distribution group now holds quotes@, public folder now holds quotesarchive@ and is a member of the distribution group.  similar bounceback.

Diagnostic information for administrators:

Generating server: customername.com

quotesarchive@customername.com
#< #5.2.0 smtp;554 5.2.0 STOREDRV.Deliver.Exception:ObjectNotFoundException; Failed to process message due to a permanent exception with message The Active Directory user wasn't found. ObjectNotFoundException: The Active Directory user wasn't found.> #SMTP#
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cpserviceAuthor Commented:
fantastic find.  was not getting any of the log entries in the linked article, but we have a winner!
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cpserviceAuthor Commented:
CN=Servers showed as empty, but after removing the folder as suggested in the linked article, this is working correctly.
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davorinCommented:
I'm glad the problem is solved!
thx
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dhoppelCommented:
Fantastic find. Thank you very much, that helped me as well.
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