Cannot create new Outlook profiles to connect to Exchange 2007 after SBS Migration

I recently did a SBS 2008 to SBS 2008 migration by following a sbsmigration swing kit. This is the only server in the office with 7 client computers connecting.

The Windows 2008 Server x64 is running Exchange Server 2007 Service Pack 3. Update Rollup 9 was applied as a troubleshooting step, but it didn't make a difference. Public folders are not used and there is no public folders database. The Default Offline Address Book is set to Web-based distribution only. The mailbox database lists the Default Offline Address Book as its Offline Address Book.

Client PCs are running in these configurations:
Windows 8 Pro Outlook 2010
Windows 7 Pro Outlook 2007
Windows 8.1 Pro Outlook 2013

The Problem:
Users are all using Outlook just fine to send and receive emails based off of Outlook profiles that were created before the migration. The only problem they are seeing is that there is nothing showing in the GAL when viewed through Outlook or OWA.

A further problem that I am running into is that if I try to create a new Outlook profile from any client computers, the user's name and email address autopopulates, but I get the message:
Microsoft Outlook
The action cannot be completed.  The name cannot be matched to a name in the address list.
This happens regardless of computer or user account.

On the server side when the Default Offline Address Book runs its scheduled maintenance or when I manually update it through the EMC, I get this error in event logs:
Log Name:      Application
Source:        MSExchangeSA
Date:          9/11/2014 9:32:27 PM
Event ID:      9337
Task Category: OAL Generator
Level:         Warning
Keywords:      Classic
User:          N/A
Computer:      IDS-SERVER.ids.local
OALGen did not find any recipients in address list '\Global Address List'.  This offline address list will not be generated.
- Default Offline Address Book

What I've tried:
I tried creating a clean user profile and also tried putting the computer object in an OU where GPO doesn't apply. Same behavior.

On the server I tried deleting and recreating the Default Offline Address Book. no help.

C:\Program Files\Microsoft\Exchange Server\ClientAccess\OAB contains a folder with a GUID. That folder only contains oab.xml. This file is updated every time I try to manually update the Default OAB.

Applied Update Rollup 9 for Exchange Server 2007 Service Pack 3. That didn't help.

I read through a lot of this : . It was informative, but didn't help.

Please help! :)
Erik STXAsked:
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Have you checked to make sure your recipient update policy is working? Check your mail users default email addresses and then check ADUC and see if the email address field is the same. If not or your are missing something you can probably start there.
By the way, you did replicate the address books and whatnot before finishing the migration?
Erik STXAuthor Commented:
Thank you. I followed this article troubleshoot E-mail address Policies. In my novice opinion everything checked out. Yes, the users' primary email addresses in EMC>Recipients are also listed in ADUC in the email address field. Is there anything else I should check to make sure the Email Address Policy is doing what it needs to do?

As for your second question, users' personal contacts were moved as part of their mailbox when the whole mailbox database was migrated. There were no shared Address Lists before the migration so I didn't take care to preserve anything; just started fresh.

One detail I forgot to mention: Users are NOT using cached exchange mode.
Erik STXAuthor Commented:
Through the EMC> Recipient Configuration> Mailbox users had an SMTP address with internal domain name and a Primary SMTP address with the external domain name. The fix was to remove the users internal domain name SMTP address.

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Erik STXAuthor Commented:
No one gave a solution so I figured this one out myself.
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