Exchange 2007 users receive 5.2.1 non-delivery reports when they send messages to a public folder

When a Microsoft Exchange Server 2007 user sends an e-mail message to a public folder, the message is not delivered. The user receives a non-delivery report (NDR) that resembles the following:

This issue occurs if one of the following conditions is true:

• The Anonymous permissions for the public folder have been set to None. Public folders must have at least Create permission granted to the Anonymous account.
  
  Note You set the Anonymous permissions on the Permissions tab for the specified folder.
• The public folder has the design in progress flag set.

To resolve this issue, use one of the following methods, as appropriate for your situation.

Method 1: If Anonymous permissions for the public folder are set to None

Assign the Create items permission or a greater permission level to the public folder for the Anonymous account. To do this, use one of the following methods.

Use the Exchange System Manager tool to configure permissions

Note Because of changes in Exchange 2007, you must perform this procedure from a computer that is running either Microsoft Exchange Server 2003 or the Exchange 2003 System Manager program.

1. Click Start, point to Programs, point to Microsoft Exchange, and then click System Manager.
2. In the System Manager Microsoft Management Console (MMC) snap-in, locate the public folder that you want to configure.
3. On the Action menu, click Properties.
4. Click the Permissions tab, and then click Client Permissions.
5. In the Name box, click Anonymous.
6. In the Roles list, click a role other than None. For example, click Contributor.
   
   Note The Contributor role is the default role for public folder client permissions.
7. Click OK two times.

Use Outlook to configure permissions

1. Log on to a client computer by using the account that has Owner permissions for the public folder.
2. Start Microsoft Outlook.
3. Right-click the public folder, and then click Properties.
4. Click the Permissions tab, and then click Anonymous in the Name box.
5. In the Permission level list, click a permission level other than None. For example, click Contributor.
6. Click OK.

Method 2: If the public folder has the "design in progress" flag set

If the public folder has the design in progress flag set, follow these steps:

1. Start Outlook.
2. Right-click the public folder, and then click Properties.
3. Click the Administration tab.
   
   Note The Administration tab appears only if you use an account that has Owner permissions for the public folder.
4. If the Owners only option is selected under This folder is available to, click All users with access permission.
5. Click OK.

Public folder databases are unavailable in a pure Exchange 2007 organization if the following conditions are true:

• Exchange 2007 did not coexist with Exchange 2003.
• You did not migrate to Exchange 2007 from Exchange 2003.

This behavior occurs because of the changes in the public folder strategy in Exchange 2007. Exchange 2007 deemphasizes public folders. For more information about changes to the public folder strategy in Exchange 2007, see the "What is happening with public folders?" topic in the Exchange 2007 Frequently Asked Questions. To view this topic, start Exchange 2007 Help, click the Contents tab, expand Getting Started, and then click Frequently Asked Questions.