Yes, it is (if you are only using Exchange 2000). If you have Exchange 5.5 servers, it would be best if you had at least one Active Directory domain in native mode. This allows Exchange 5.5 distribution lists to be mapped across to universal distribution groups and universal security groups in Active Directory. The Active Directory connector is hard-coded to create UDGs, but Exchange 2000 will convert these to USGs on an as-needed basis. If UDGs exist in a mixed-mode domain, they cannot be converted into USGs and your public folder permissions will break.
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