Cannot expand public folders in Outlook but can in OWA

Hi All,
I have a problem which I hope some one might be able to shed some light on. Firstly, the environment is Exchange 2010 (v 14.01.0438.000) and all clients use Outlook 2007. We have one user in the organisation who recently noticed that he cannot expand public
folders. He had been able to do so a couple of months back but could not pin point the time it stopped working. The error received reads :-
"Cannot expand the folder. The set of folders cannot be opened. The attempt to log on to Microsoft Exchange has failed."
I thought that this might be a permissions issue but this particular user can access the public folders via OWA. Also, my AD account was a copy of this user's and I can access public folders without issue.
I have tried the following so far :-
Tried running Outlook in safe mode
Tried recreating the Outlook profile.
Tried creating a new Outlook profile on a different client PC.
Tried running Outlook in cached an online modes.
Ran Exchange BPA and found no issues.
Checked ADSIedit for old administrative groups left over from past migrations.
used the test-outlook connectivity cmdlet from powershell which ran it's tests successfully.
This user originally set up all the public folders and was still listed as the owner of all of them.
Tried creating a new public folder.
Checked for an Outlook update that had caused a similar issue.
All the above failed to progress the situation. I have come across posts online that sound very similar, one stated that a Microsoft tech had found a permission that wasn't correct but didn't list which permission and the other related to an update to Outlook
that had triggered it. I can confirm it's not the update and I have checked permissions in the public folder management utility in Exchange. Also, my AD account is a copy of his and I can access the folders without issue.
I have also considered what may have changed on the network recently. The only major change has been a new admin password but I cannot see how that would be relevant.
Any help would be hugely appreciated!
Thanks in advance!

Hello John: We are having the exact same issue. Thank you for the great description, it hits the nail on the head for an issue that is tough to explain.   Did rebuilding the mailbox fix the problem? We thought a next step would be to create a new
AD profile for the user all together,  although replacing the user herself would be easier for us. She obviously caused this problem and will most likely cause us more problems that might be worse if she keeps clicking and sliding on every thing that
is shiny to see what it does..
I can only surmise that CaRa ChEn has decided to "better understand customer views on social support experience" elsewhere.  I think the only logic for the mailbox suggestion would be "grasping for straws" and it is the only thing you have not tried
so far.  (Other than replacing the user).  Pactera employees get points for being the first to reply to a question and the first to have a suggestion marked as helpful as well as the sheer quantity of replies to the forums that are made.  High
value is placed on moving posts to different forums as well so I thought I would ask quick before the thread gets shoveled somewhere else..  If she needs help with the interview project she can find plenty of my thoughts here in the community.
Thanks again, and we will reply back if replacing the user (account) does NOT solve the problem, otherwise one can assume we are happy campers again our new employee and remember just because it is blinking does not mean you should click on it.  :)
Best regards,
RickkEE

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