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Send on behalf error, but from own account!?

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I'm having a strange issue with a couple of users who are getting an error that they 'cannot send on behalf of this user' but it is coming from thier own account.  This is happening on new messages (not forwards or replies).  We've seen this on both messages to individuals outside the organization as well as internal including internal distros.  Has anyone heard of this before?  We're on Exchange 2010 SP1 and the client is Outlook 2007.

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