Our company has a Public Folder Contacts list which contains a subset
of the mail enabled users on our network.

If a user tries creates their own DL (in their own Contacts) containing
users from the Public Folder Contatcs list they are unable to do so
until they either

a) CLick on folder view, the Public Folders

or

b) When the Select Members dialogue box appears (Showing names from
the Public Folder) they right click and select Properties of any user.

After doing one of the above actions they can add users from the Public
folder, save the list and it functions correctly.

If they leave outlook open, they can edit their DLs, (add / remove
users) etc and all is well.

If they close outlook, relaunch outlook the try to modify a DL they
cannot do so until they have carried out action a) or b) as above.

And if the click on 'Update Now' in DL, the 'One or more members of the
list cannot be found' dialogue box appears.

Has anyone come across this problem ?

If we select names from the GAL or their own personal Contacts then
there are no problems.

Any advice on this problem would be appreciated.

Rod