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Exchange 2010 sp3 upgrade error - AD references to old 2003 server

I've just tried running the SP3 upgrade for a clients Exchange 2010 server, so I can start a hybrid deployment with 365. The SP installer has come up with an error referring to the old 2003 exchange server and its public folder database. The client doesn't use their public folders much, so if they break its not a big deal but will there be other repercussions? Infact I'm not 100% sure what I need to be deleting in ADSI Edit as I can't find a "Property Name: PublicFolderDatabase".

The following error was generated when "$error.Clear();
      initialize-AdminGroupPermissions -DomainController $RoleDomainController" was run: "Object First Administrative Group': the linked object of property 'PublicFolderDatabase' is '<domain>.local/Configuration/LostAndFoundConfig/EXCHANGE1/InformationStore/First Storage Group/Public Folder Store (EXCHANGE1)', which doesn't exist in First Organization '<domain>'. This might be because the object is corrupt in Active Directory. Please set a valid value for this property. Property Name: PublicFolderDatabase".
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Vick Vega
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The old exchange is long gone, the backups may have even been deleted. The server has been deleted from AD and is actually sitting in lost and found in adsi edit. so those steps in the first petri link had already been done (I was not involved in decommissioning the old server)

The error is only referring to the old 2003 administrative group, Not the current 2010 group. any idea what would happen if I just deleted the whole first administrative group in ADSI edit... (probably nothing good I imagine)

screenshots show administrative groups and the old server sitting in lost and found

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As explained in the linked article, one of the objects references delete entry for Public Folders, it needs to be removed some you can continue with the setup.
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