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The following knowledgebase will help you to resolve the issue that earlier Outlook clients cant connect to Exchange 2007 Server
Earlier Outlook clients (Earlier then Outlook 2007) cant connect to Exchange 2007 Server
When you installed Exchange 2007, you may answer "No" to the question:
"Do you have any client computers running Outlook 2003 and earlier or Entourage in your organization?"
The eliminate of the creation of Public Folder store and the connection from this Public Folder store to the mailbox store.
Farther information on the relationship of Public Folder and Outlook can be found in:
Exchange 12 and Public Folders
Note: Outlook 2000 isn't supported by Exchange 2007.
1. Create a new public folder store.
2. Connect the new public folder store to exiting mailbox store that host users mailboxes.
3. Use "Configure Offline Address Book (OAB) Distribution for Outlook 2003 and earlier clients"
wizard in Exchange 2007 Console, to enable Offline Address Book (OAB) Distribution for Outlook 2003
and earlier clients
How Outlook 2007 works with different Exchange Server versions
Scripts for Managing Public Folders in the Exchange Management Shell