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Exchange 2010 store.exe 100% CPU Utilization

I have a perplexing problem with a SBS2008 server running Exchange 2007. The environment is:

VMware guest running SBS2008
Exchange Roles mailbox, CAS, HUB no Edge (single server config)
12GB RAM
18 Users

No Antivirus installed
Exchange Version 8.3 build 83.6

Store.exe constantly peaks at 100%. I have found numerous similar issues and have attempted all applicable fixes:

Stopped Windows search, applied all service packs and rollups.

The only event log error is "MSExchangeFBPublish Error Updating public folder with free/busy information on virtual machine server. The error number is 0x8004010f.

How can I figure out what store.exe is doing?
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Also, running Exmon I see various users using between 20-50% of CPU, but it does not seem to be isolated to a specific user. After running the performance troubleshooter, it did show me a high cpu issue, and stated the RPC calls were high.

I also noted that many clients were running 8.3.264 client versions. Has anyone heard of older Outlook versions causing problems?
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What vmware hypervisor are you using. please perform a offline defrag od the databases.

when does the backups run
The hypervisor is ESXi 4.1. We use Appassure Replay for backup (snapshots), and they run every 3 hours but have no impact on other clients we have configured similarly. I have also disabled them to see if any utilization of store.exe could be related. I'll do a defrag and post the rsults. This was a migration from SBS2003, so the mailboxes were transferred during the migration.
I have seen outlook use a high % in cases where there could be a corrupt calendar item.  are any of your databases growing at a abnormally fast rate?
No fast growth. Would expect exemon would show the user account causing high usage, but it seems pretty spread out among most users.
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Whilst you are logging calls with MS, can u check your disk performance, at the vcleint level, when u have this issue happening!