[Dovecot] Dovecot 1.0.01 / Outlook error 0x800CCCD2

Hi.

I'm having a problem with a user running outlook 2003 against dovecot 1.0.1.

A second user works fine and I haven't moved on to create a third (or more yet).

On a send and receive I get an error from outlook

"Task 'Checking for new mail in subscribed folders on server.' reported error (0x800CCCD2) : 'Outlook is unable to download folder (null) from the IMAP e-mail sever for account Server. Error: The server responded: 'Permission denied'....'

Now I've check permissions and as a precaution "chown -R" to make sure I got them all.

If I cancel the error I seem to be able to continue without a problem.

It's just very annoying to get an error I can fix.

Can anyone shed on light on this or suggest a plan of attack?

Thanks

Daveh