[There's a reason that Yoda is the unofficial mascot of SBS.  Size indeed matters not.] Mail enabled public folder - rejected with ndr - THE OFFICIAL BLOG OF THE SBS "DIVA"
Thu, Jan 26 2012 23:07 bradley

Mail enabled public folder - rejected with ndr

Recently during a migration someone found that public folder mail enabled routing was not working.  Turns out this was the problem:

When sending e-mail messages to a mail-enabled public folder that have been replicated from old Exchange Server 2000/2003/2007, Exchange Server 2010 environment mails are rejected with NDR.:
http://social.technet.microsoft.com/Forums/en-US/exchangesvrgeneral/thread/e8e78736-be67-4e4a-b929-2c3ce61e0eb6

Also read this:

http://social.technet.microsoft.com/Forums/en-TT/exchange2010/thread/49e06d4a-1b32-4067-999a-c85abd349c68

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