Yes it is cache mode on outlook, but it needs to be as its a laptop user. I deleted the profile and allowed outlook to recreate the offline file (2gig) office 2007.
Problem still there, although for some reason i have to goto mail options and set the mail to check every 1 minute. I'm starting to suspect that it is outlook on the laptop that may be causing the problem. Perhaps an uninstall and reinstall of office 2007 may be required.