You cannot configure Exchange Server 2007 so that the simple display name appears in outgoing messages

You can set the simple display name for a mailbox user in a Microsoft Exchange Server 2007 environment. However, you cannot configure the system so that the simple display name appears in outgoing messages.

Note This feature is enabled in Exchange Server 2003 Service Pack 2 (SP2).

To resolve this problem, install Update Rollup 4 for Exchange Server 2007 Service Pack 1 (SP1) on the Exchange server. For more information about Update Rollup 4 for Exchange Server 2007 Service Pack 1, see the following Exchange Help topic: For more information about how to obtain the latest Exchange service pack or update rollup, see the following Exchange Help topic:
After you apply this hotfix, type the following command in the Exchange Management Shell to enable this feature for a specific remote domain:To enable this feature for all remote domains, type the following command:Additionally, you can verify that the option is enabled on a specific remote domain by typing the following command:

For more information about simple display name on Exchange Server 2003, click the following article number to view the article in the Microsoft Knowledge Base:

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