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Microsoft Exchange Server 2007 Service Pack 1 (SP1) lets you create multiple users who have the same mailNickname attribute by using the New-Mailbox command in Exchange Management Shell. However, when you try to create more than 1000 users who have the same mailNickname attribute, you receive the following error message:
A proxy generator DLL on server <server name> could not be found or failed to initialize. Proxy addresses for the current recipient cannot be calculated. Please ensure that all the proxy addressgenerator DLLs have been installed on the target server.
This issue occurs because of a hardcoded limitation that limits the number of users who have the same mailNickname attribute in a domain forest to 1000.
To resolve this problem, install Update Rollup 9 for Exchange 2007 Service Pack 1. For more information about Update Rollup 9 for Exchange Server 2007 Service Pack 1, see the following Exchange Help topic: