Question : Exchange 2007/Outlook 2007 Public Folders - Non-local users cannot be given rights on this server?

Hello - we are moving from Exchange 2003 to 2007.  When I try to add a mail-enabled group to a public folder in Outlook (like I always used to), I get the error "One or more users cannot be added to the folder access list.  Non-local users cannot be given rights on this server."
How do I add group permissions in the new world for public folders?

Answer : Exchange 2007/Outlook 2007 Public Folders - Non-local users cannot be given rights on this server?

Being distribution groups is your problem.

The groups needs to be mail enabled security groups. In previous versions of Exchange the store did an internal process to change distribution groups to security groups. That is no longer done by Exchange 2007, so you need to create the groups as security groups.

Simon.