Exchange 2007/ 2010 Public Folder Replication

A while back we upgraded our Exchange 2007 server to Exchange 2010. THe only reason the Exchange 2007 server still exists in our environment is due to the fact that Public folders will not replicate over. I have removed the Servers container from the First Administrative Group that seems to be the common fix for everyone else with no luck. Some additional things I have noticed which are likely directly related are that the hub version 8 queue is filled with SMTP Relay in ActiveDirectory Site (Delivery Type) and the message details are as follows:

Identity: Exch2010Server\55670\448024
Subject: Status Request
Internet Message ID: <EFAEFC6428FC94439D15190DF0DE4B6F0983C6CD@Exch2010Server.domain.local>
From Address: Exch2010ServerPublicFolder@domain.com
Status: Ready
Size (KB): 4
Message Source Name: FromLocal
Source IP: 255.255.255.255
SCL: -1
Date Received: 7/9/2012 2:34:37 PM
Expiration Time: 7/11/2012 2:34:37 PM
Last Error:
Queue ID: Exch2010Server\55670
Recipients:  Exch2007ServerPublicFolderDatabase@domain.com


We also get a similar mesage with the subject "Folder Content"

In the Exchange 2010 Server Connectivity Logs we have

2012-07-11T00:00:05.789Z,08CF2B5F8F4FBADE,SMTP,hub version 8,+,SmtpRelayWithinAdSite 61027a30-e9a9-4c2d-acb5-c1efc96d5d8b;QueueLength=66
2012-07-11T00:00:06.086Z,08CF2B5F8F4FBADE,SMTP,hub version 8,>,Exch2007Server.domain.local[IP Address]
2012-07-11T00:00:06.086Z,08CF2B5F8F4FBADE,SMTP,hub version 8,>,Established connection to IP Address
2012-07-11T00:00:06.117Z,08CF2B5F8F4FBADE,SMTP,hub version 8,-,Messages: 0 Bytes: 0 (Retry : Cannot achieve Exchange Server authentication)

My guess is there is some permission missing in a receive connector, but I dont want to start messing around with permissions without some guidance.

Any assistance is much appreciated.


Thanks!