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JeffBeallFlag for United States of America

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outlook 2010 calendar

Hello, I am helping a user who had the following error when trying to set permissions on an Outlook 2010 calendar

"One of more users cannot be added to the folder access list. Non-local users cannot be given rights on this server"

Google searching seems to keep coming up with a solution similar to this

"To work around this issue, create security groups instead of distribution groups. Then, set folder permissions or set delegate permissions for the security groups."

So just to be clear, changing the security group would be done on the exchange server, correct?
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Amit
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ok but would these things be done on the server?
thank you