Solution:
To resolve this issue, remove the explicit Deny for the Everyone group on these permissions:
1. Start Exchange System Manager.
2. Under the Folders object, right-click the Public Folders object, and then click Properties.
Fig1
3. Click the Security tab, and then click the Everyone group.
4. Click to de-select the Deny check box for the three following permissions:
* Create public folder
* Create top level public folder
* Create named properties in the information store
Fig2 Fig3
5. Click Apply, and then lick OK to close the properties.
Now you can go back to organizing your emails!
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