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Problem creating rules in Outlook

In Outlook, whenever I try the organize button to create a rule, I get the message: "The rule could not be created. Check your folder permissions." This happens only when I am connected to Exchange. If I connect offline, it does not. Where on the server are the rules being saved, and where do I change the permissions?
Despite the way this error message sounds, it most likely is not a problem with permissions. It sounds like the rule is being interrupted during processing. Have a look at Microsoft Knowledge Base article Q222224 and see if that might describe what you're seeing. If so, you can use the workaround in the resolution portion of this article to prevent this behavior.

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