Correct, it was location 1 errors. CDO problems, with DNS resolving to the wrong server. Apparently if you have migrated from exchange 03 to exchange 2007 or 2010, the exchange 03 box needs to be out of the picture before we continue.

In some circumstances, depending on how the DNS servers are setup, it might work with the exchange 03 in the environment, but for the most part, of you have a separate DC with a DNS server on the front end, and an Exchange Box just holding Databases, then the exchange 03 box must be axed.

In order of Completion:

Clients must migrate all users over to the new exchange box, leave the add2exchange service for last.

Migrate public folders

Lastly when ready, migrate the add2exchange mailbox, and kill the 03 exchange.

Reboot new exchange box, making sure all MS updates are done

Everything should work just fine.