The "Use friendly names in participant list and message area" command does not function correctly in a Lync 2010 Group Chat client

Symptoms

Consider the following scenario:

You right-click on a chat room in a Microsoft Lync 2010 Group Chat client, and then you click Edit Chat Preferences.
You clear the Use friendly names in participant list and message area check box in the Chat Room Settings dialog box.

Note Now, the participant list of the chat room displays the email addresses of the contacts.
You wait several minutes.

In this scenario, the friendly names of the contacts are still shown unexpectedly for certain participants.

To resolve this issue, install the following cumulative update:

2500446 scription of the update for Lync 2010 Group Chat client: April 2011

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

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