During a migration from Exchange Server 2007 to Exchange Server 2010 you may encounter a problem with the replication of public folders.
In this situation neither the public folder hierarchy or content will replicate from Exchange Server 2007 to a public folder database on Exchange Server 2010. This will usually occur in Exchange organizations that have previously run versions of Exchange Server 2003 or below.

No PF Hierarchy
The Exchange Server 2010 Application Event Log will have this error:
Log Name: Application Source: MSExchange Store Driver Date: 13/06/2010 2:08:36 PM Event ID: 1020 Task Category: MSExchangeStoreDriver Level: Error Keywords: Classic User: N/A Computer: SERVER Description: The store driver couldn't deliver the public folder replication message "Status Request (PublicFolders@domain.com)" because the following error occurred: The Active Directory user wasn't found..
The cause of this error is a legacy container in Active Directory for the Exchange 2003 (or earlier) server objects.
Note: this only applies to organizations that no longer run any Exchange 2003 or earlier servers. Do not follow these steps if you still have Exchange 2003 or earlier versions running in your organization.
Launch ADSIEdit.msc and navigate to CN=Configuration <your domain>, CN=Services, CN=Microsoft Exchange, CN=<your org name>, CN=Administrative Groups, CN=<your legacy administrative group>, CN=Servers.

Navigate to the CN=Servers container
If you no longer operate any Exchange 2003 or earlier servers and the Servers container is empty then you can delete the container.
You should now be able to replicate the public folder hierarchy and content from Exchange Server 2007 to 2010.




Indeed. Also when you have multpile legacy server container that are empty and even when the default one has been renamend you can delete them. This was verified by the Exchange team en MS Support. Using exFolders you can find out if you are affected before even trying PF replication. See more infor + screenshot on http://workinghardinit.wordpress.com/2010/05/25/exchange-2007-2010-public-folders-issues-the-active-directory-user-wasnt-found/
Cheers
a lot clearer instructions!!! i finally made it to work. thanks!
I had same issue, but still have Exchange 2007 Exchange 2010 Public folder replication issues.
Error -1404 occurred while generating an outgoing replication message.
Type: 0×4
Folder:
Arg.
Robert, I also encountered issues with an infinite loop detected in the routing topology. Public Folder replication messages were visible in the Queue Viewer with a “loop detected” error so that one wasn’t hard to find.
I’ve also encountered replication problems when public folders have invalid attributes, such as names with trailing whitespaces. This would be noticeable if you ran “get-publicfolderstatistics” and it returned warning messages.
Aside from that I haven’t encountered any other specific issues.
Paul,
Thanks. Nothing “interesting” in the Queue. I fixed all the trialing white space issues when I moved to Exchange 2007. I’ll probably have to call in a SR for this when i have the time. Perhaps the new repair tools in SP1 will help.
Hi,
We’re an organization with a single domain and a single Exchange server and a couple years ago we migrated from 2003 to 2007. Now we’re attempting to migrate from 2007 to 2010, and I wanted to configure public folder replication just as an easy way to get all the items in our public folders over to the new server and its brand new one day old installation of 2010. However, after trying this fix in adsiedit.msc the couple mailboxes I put on the new server for testing can no longer send mail to anybody except other mailboxes on the new server. They can receive mail from anybody (both within the organization and outside the organization), they just can’t send to anyone except those recipients with mailboxes that are also on the new server. It was working fine before this change, so this must have been what caused it. Any ideas what I could do to get it back to the way it was? I tried running some of the setup switches (like /PrepareAD), and when that didn’t work I tried uninstalling and reinstalling Exchange on the new server, but neither of these fixed it. Thank you for any help you can provide!
Dave, first step would be to look in the transport queue and see the reason given for the mail not delivering.
You should also do basic SMTP connectivity testing between the two servers just to be sure, some firewall and antivirus products block port 25 without telling you. Just use Telnet and make sure each server can establish a connection to the other.
Sorry, I figured it out, it was an amateur firewall/port issue and had nothing to do with the change I made for public folder replication (which incidentally now works).
But I certainly appreciate you taking the time to try and help me out despite the fact that technically my problem didn’t actually deal with public folder replication per se. Thanks again!
Thanks!
This works for me,!