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Logon errors in Exchange 2000 server

All new users I create cannot logon to Exchange 2000 server through Outlook. The user is prompted with username and password and the "incorrect credentials" error occurs. The user has full mailbox rights (User is logged on the domain) and the user can connect using OWA. The workaround I found is to make the user a member of Administrator's group, which is not a good solution. The problem seems to be in Active Directory. I've reapplied Windows SP4 and Exchange SP3. What should I do?
This sounds like a classic case of the Recipient Update Service (RUS) not having stamped the Exchange attributes on the new user objects in Active Directory.

If you want to confirm this, use ADSIEdit to view the properties for a problematic mailbox and check the value of the showInAddressBook attribute. If you compare this with a good account, you'll note that all good accounts have this attribute populated whereas problematic accounts don't. That said, you may find that accounts suddenly start working after a given time period has elapsed, in which case your RUS is taking some time to stamp the new accounts. If, however, your RUS never seems to stamp these objects no matter how long you wait, then you've got either a problem with RUS configuration or one with permissions.

See the following Microsoft Knowledge Base Articles to resolve these issues: 319065, 287137, 286356 and 297124. After that, your newly created accounts should be able to access their Outlook without having to be made administrators in your domain.

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