Exchange server is installed an running, the email addresses are added when a new user is entered in the active directory and the email is bold in the properties. When configuring the client outlook 2007 the client workstation can not see any users and will time out with an error the exchange server is not available you must login or connect to the internet.It makes no difference if Im logged into the domain as the user or administrator. I have a watchguard firebox on the internet connection but this should connect as its all inside the domain. All work stations have valid Ip addresses and can ping all devices on the network. Any Solutions would be helpful.

check the DNS settings on your servers & clients, they should all be pointing to internal DNS servers. If you are using Exchange 2007, creating mailboxes from Active Directory Users & Computers is no longer supported- the mailbox creation will succeed, be visible in both exchange server & user properties but you will be unable to log into it.

Any good step by step proper proceedure to get this setup. I assuming it needs to be done through the exchange manager but not sure. It seems that configuring from the client is out if I cannot connect to the exchange server?