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we had this same issue and the resolution in the article below fixed our issue.<br />
<br />
<a href="http://technet.microsoft.com/en-us/library/replication-error-2146893022-the-target-principal-name-is-incorrect(v=ws.10).aspx#BKMK_Resolutions" rel="ugc">http://technet.microsoft.com/en-us/library/replication-error-2146893022-the-target-principal-name-is-incorrect(v=ws.10).aspx#BKMK_Resolutions</a>
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we had this same issue and the resolution in the article below fixed our issue.

http://technet.microsoft.com/en-us/library/replication-error-2146893022-the-target-principal-name-is-incorrect(v=ws.10).aspx#BKMK_Resolutions [http://technet.microsoft.com/en-us/library/replication-error-2146893022-the-target-principal-name-is-incorrect(v=ws.10).aspx#BKMK_Resolutions]

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Hello,<br />
<br />
We have a client who is running outlook 2007, they have two hosted exchange mailboxes, and because outlook 2007 can only handle 1 exchange account I have added the other as an IMAP.<br />
<br />
The issue we have is each time you open outlook it prompts with <br />
'Internet Security Warning'<br />
'The server you are connected to is using a security certificate that cannot be verified. &nbsp;The target principal name is incorrect.'<br />
<br />
You can click yes to this box and it works properly, however at random times it will pop up again, and close any e-mail you are in the process of writing, without saving it to draft.<br />
<br />
I rebuild the outlook profile and it still had the error. &nbsp;<br />
I then created a new profile with only the IMAP address and I still have the problem.<br />
<br />
However if I try it on any other machine it works fine. &nbsp;<br />
<br />
Any idea what could be causing it?
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Hello,

We have a client who is running outlook 2007, they have two hosted exchange mailboxes, and because outlook 2007 can only handle 1 exchange account I have added the other as an IMAP.

The issue we have is each time you open outlook it prompts with 
'Internet Security Warning'
'The server you are connected to is using a security certificate that cannot be verified.  The target principal name is incorrect.'

You can click yes to this box and it works properly, however at random times it will pop up again, and close any e-mail you are in the process of writing, without saving it to draft.

I rebuild the outlook profile and it still had the error.  
I then created a new profile with only the IMAP address and I still have the problem.

However if I try it on any other machine it works fine.  

Any idea what could be causing it?

The target principal name is incorrect when using imap and outlook 2007

Exchange is the server side of a collaborative application product that is part of the Microsoft Server infrastructure. Exchange's major features include email, calendaring, contacts and tasks, support for mobile and web-based access to information, and support for data storage.

Exchange

Microsoft Outlook is a personal information manager from Microsoft, available as a part of the Microsoft Office suite. Although often used mainly as an email application, it also includes a calendar, task manager, contact manager, note-taker, journal, and web browser.