Hi Alan,
Any updates regarding the issue?
From your description, I guess that the Exchange 2007 users are able to retrieve Free/Busy information for Exchange 2007 users by using Outlook 2007. If I am off base, please let me know.
At this time, I suggest you check the Application log on the Exchange 2007 and post related error Event log here. You should get a 4003 event when the issue occurs:
Exchange 2007 Users Unable to See Free/Busy Information for Mailboxes on Exchange 2003 Server
http://technet.microsoft.com/en-us/library/cc540460.aspx
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