The Import-Mailbox function I was never able to get to work. I do not beleve the issue I was having was related to security because after further testing I discovered that I got the same error when I tried the Export-Mailbox. I even tried to Export-Mailbox with the user account I had setup to do the Import/Export exact same error. I think the problem has something to do with the way I had Outlook 2010 64bit Beta installed. I could be a error in the beta verson I do not know.
I did not attempt to use ExMerge artical listed above however I would comment that the artical above was for 2007 and security has been overhaled 2010.
I worked around the problem by putting all the users pst files in a folder on the server. I then when around a attached the users Outlook client to the new server then using the Outlook Import feature reimported there email. Very labor intensive but it works.