I'm posting this as an informative post only as the issue was resolved.
Might help someone else in the future because I know I'm not the only one
that has done this or will do this.

About 9 months ago, we started a process to replace our domain controllers
with new, under warranty, better etc etc hardware. We had 4 DC's that were
on old, out of warranty hardware, and even a couple on hardware that was
from a defunct company.  We went about this process very slowly from the
aspect of turning off the old DC's, the 2 new DC's that we built were up and
running in a very short time.  We did all the moving FSMO roles, GC's, DNS,
DHCP from the old ones then waiting before running dcpromo to demote the
server to just being a member server rather than a DC.  This last Tuesday
afternoon, we determined that it was time to demote the last remaining DC
which was done just after lunch.  In a matter of a few minutes, everyone's
Outlook became unresponsive.  I could access the console on Exchange, but
when I tried to open ESM, I started receiving errors.  The event logs led me
to believe that Exchange could not communicate with the domain, and my
assumption was that the last time Exchange was bounced (in Feb for the MS
updates) that it authenticated on that DC and therefore needed a reboot
which I did.  That's when it got really fun and exciting, Exchange stopped
the boot process at "Applying network" screen.  It was up enough for me to
remotely connect to the event logs & registry.  I was primarily focused on
these events in the application log:  9144 (which was referring to the just
demoted DC), 2007, 2114, 2102 & 2090.  Most of these were from MSDSAccess.
After trying several things from KB articles found, and still having the
same results on reboot, we opened a call with PSS, meanwhile continued to
search for something (we were on hold waiting for a tech support person for
at least an hour).  Finally Event ID 2102 lead me to this KB article:
896703.  Basically, the Exchange server had lost the "Manage auditing and
security log" permission in the domain, even though when we looked at this
on the DC's it appeared that the permission was there, the utility that is
referenced (policytest) indicated that it wasn't there.  I followed the
recommendation of running the domain prep from the Exchange CD, rebooted
Exchange again, and all was well.

My bottom line conclusion of what happened was that the last DC that was in
place when Exchange 2003 was originally installed was the DC that we demoted
on Tuesday.  From all aspects that we looked at for months, replication was
happening, NTFrs was happy, no errors, however, this specific permission was
not replicated from the old DC's to the new ones, and it even appeared that
the permission had indeed replicated when it was checked from the DC's, but
obviously was not.

So, if you are replacing, or thinking of replacing old DC's, run the
policytest.exe from the Exchange CD (support\exdeploy\policytest.exe) and
make sure that the results are good before demoting that last DC, or you
could spend an afternoon like I did last Tuesday.

Have a great weekend everyone!!

-- 
Sherry Abercrombie

"Any sufficiently advanced technology is indistinguishable from magic."
Arthur C. Clarke

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