Symptoms
Consider the following scenario,
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You install Update Rollup 4 that is dated June 22, 2011 for Microsoft Exchange Server 2010 Service Pack 1 (SP1) in an Exchange Server 2010 SP1 environment.
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You try to use Microsoft Office Outlook to copy or move a public folder or a folder in a mailbox to a different mailbox, a personal folder (.pst), or a public folder.
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The public folder or the folder in the mailbox contains subfolders.
In this scenario, the parent folder is created in the destination. However, the items and subfolders of the parent folder are not copied. Additionally, in the move scenario, the items and subfolders are deleted from the source location, and the deleted items are located in the Recoverable Items folder.
Notes-
A move operation consists of two steps:
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Copy the data from the source location to the target location.
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Delete the data from the source location after the copy operation is completed.
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This issue does not occur in Outlook Web App (OWA) and Exchange Web Services clients such as Entourage or Outlook for Mac 2011.
Cause
This issue occurs because Outlook clients pass the OpenSoftDeleted flag when requesting a Fast Transfer Copy operation to complete the scenario that is mentioned in the "Symptoms" section. This flag causes all items that are not deleted to be ignored by the request operation, and no active folder content is copied. Therefore, the copy or move operation does not work as expected.
Resolution
Interim Update 2581545 must be applied to all the Exchange Server 2010 Client Access servers and Mailbox servers that have Update Rollup 4 that is dated June 22, 2011 installed.
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
More Information
The Fast Transfer Copy functionality mentioned in this article occurs between resources that require a unique MAPI logon. Fast Transfer copy is also always used when copying public folder content using the Outlook client. This method is used to transfer content between distinct user mailboxes, public folders, and folder copy operations from an Exchange Server to a client-side PST store. Copying content in a user mailbox or does not use the Fast Transfer Copy functionality.
For more information about Recoverable Items, visit the following Microsoft website:General information about Recoverable ItemsFor more information about the OpenSoftDeleted flag, visit the following Microsoft website: