Can anyone tell me if there is a limitation to the # of public folders that exchange 2007 can hold? Our outsourced exchange provider say only 1025 Is this correct???

Hi, No there is not any limit on number of public folder Exchange 2007 server hold. I see many org which has a large forest of PFs (~30-35k) on Exchange 2007. This limit would be from provider and defined to put in their environment, verify with them...

While deep hierarchies scale better than wide hierarchies, remember that it is best practice not to exceed 250 subfolders per folder. Exceeding 250 subfolders likely will cause an unacceptable client experience when a client requests access Please review Exchange Public Folder Best Practices for optimized performance on public folder