Event 8197 is logged when Microsoft Exchange System Attendant service fails on an Exchange Server 2007 server

On an Exchange Server 2007 server, the following event may be logged in the Application log:

Event Type: Error
Event Source: MSExchangeFBPublish
Event Category: General
Event ID: 8197
Computer: SERVERNAME
Description:
Error initializing session for virtual machine SERVERNAME. The error number is
0x80040111. Make sure Microsoft Exchange Store is running. Also, make sure that
there is a valid public folder database on the Exchange server.

The issue occurs when the Active Directory site name of the Exchange server is the same as the NetBIOS domain name, and the Exchange server tries to initialize the System Attendant service that is querying a Windows Server 2003 domain controller. 

When Windows Server 2003 domain controllers are used, Active Directory site cost queries are case-sensitive. If the NetBIOS domain name matches the Active Directory site name of the target Exchange server, the site name that is reported by the server may be set to a capitalized version of the site name. In this case, you can see this problem when the value of the DynamicSiteName registry entry under the Netlogon registry key is set to a capitalized version of the site name on the target Exchange Server.

The System Attendant service queries the value of the DynamicSiteName registry entry before it uses other Windows function calls to verify that the link cost of the Active Directory site for the best public store to connect to.

If the returned site name is in the wrong case, a DsQuerySitesByCostA query to a Windows Server 2003 domain controller will fail.

Note This issue also occurs if the requesting server is running Windows Server 2008 or Windows Server 2008 R2.

To resolve this issue, change the Active Directory site name so that it is different from the NetBIOS name of the child domain. The Active Directory site name is not visible or relevant to users. However, it must be unique.

The problem was corrected in newer versions of Windows Server operating systems.