When you try to add client permissions for a public folder for a Microsoft Windows distribution group (not a security group), you receive error messages that may seem misleading.
If you use Exchange System Manager to try to add the client permissions for the distribution group, you receive the following error message:
The operation failed.
ID no: 80004005
Exchange System Manager
If you use a Messaging Application Programming Interface (MAPI) client such as Microsoft Outlook to try to add the client permissions for the distribution group, you receive the following error message:
The modified permissions could not be saved. The client operation failed.