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Outlook keeps prompting you for credentials and incorrectly connects to an out-of-site global catalog after you install Update Rollup 6 for Exchange Server 2007 SP3

Symptoms
Assume that you use Outlook Anywhere to connect to Microsoft Exchange Server 2007. The Exchange Server 2007 server has Update Rollup 6 for Exchange Server 2007 Service Pack 3 (SP3) installed. In this situation, Outlook continuously tries to connect to an out-of-site global catalog (GC) server. Therefore, you are continuously prompted for the logon credentials.

Additionally, you may receive an error message that resembles one of the following when you try to change the distribution list membership in Outlook:

Changes to the distribution list membership could not be saved. You do not have sufficient permissions to perform this operation on this object.

The Delegates settings were not saved correctly. Unable to activate send-on-behalf-of list. You do not have sufficient permission to perform this operation on this object.
Cause
This problem occurs because the DSproxy component refers to an incorrect GC server to Outlook.
Resolution
To resolve the problem, install the following update rollup:
2734323 Description of Update Rollup 8 for Exchange Server 2007 Service Pack 3
Workaround
To work around this problem, configure Outlook to a specific GC server.
More information
For more information about how to configure Outlook to a specific GC server, click the following article number to view the article in the Microsoft Knowledge Base:
319206 How to configure Outlook to a specific global catalog server or to the closest global catalog server

For more information about the hotfix that is included in Update Rollup 6 for Exchange Server 2007 Service Pack 3 (SP3), click the following article number to view the article in the Microsoft Knowledge Base:
2616427 An Outlook Anywhere client loses connection when a GC server restarts in an Exchange Server 2007 environment
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Properties

Article ID: 2732525 - Last Review: 09/04/2013 09:15:00 - Revision: 3.0

Microsoft Exchange Server 2007 Service Pack 3

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