Apple OSx Lion 10.7.4 - iCAL Wont Send Invitations to Exchange 2010 User

We have an Apple Lion 10.7.4 server we are trying to use as a soultion for our Ipads and Iphones to access Public Calenders. We can send email form the server through Exchange in Apple Mail. SMTP settings in iCAL appear correct.

When we create a Event and go to send invitation it reolves the user name from the Active Directory server (Windows 2008) but the name has a grey "?" next to it. Seems it is not getting the email address associated with the AD account.

No mail invitation is ever sent.
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