I installed outlook 2013 on a workstation (win7) - I connected the user to the server (Win 2008 sbs) and configured outlook to the local user. I.e Lulu.local. They don't use their email for external use only for internal and accessing public folders. I connected a pop3 account to all the pc's aswell. The pop3 account is fine and accepts the password but the local account continually asks for a password for lulu.local. I type in the users password - click on remember password, after about 4 times of doing it it goes away them pops up a little later. Have followed some stuff on the net but nothing works.
let me summarise your problem.
you have SBS 2008 (exchange 2007), and they have an email address of firstname.lastname@example.org
their usage of email is internally only (no external usage)
you connect on pop3 (how pop3 connect public folders?) only?
what do you mean local account?
don't all your workstation joined to the domain?
I need a bit more clarity from you.
If you can attach some screeshot that will definitely help to clear things out.