Activation Error - LowLevelError ? help

[Kul]

BES 4.1.3 / Exchange 2003 SP2:
I am trying to activate a user and keep getting a "The server is not responding. Please contact your System Administrator.", when I look at the log file i see the below for this user

[30053] (10/14 17:28:21.428):{0x16E0} Retry start for user: /o=AD/ou=location/cn=site Users/cn=Firstname.lastname
[30041] (10/14 17:28:21.428):{0x16E0} Starting handheld for Firstname lastname
[40704] (10/14 17:28:21.428):{0x16E0} MAPIMailbox::MAPIMailbox(2) ServerDN=/O=AD/OU=location/cn=Configuration/cn=Servers/cn=Exchsrvrname/cn=Microsoft Private MDB, MailboxDN=/o=AD/ou=location/cn=site Users/cn=Firstname.lastname
[40739] (10/14 17:28:21.428):{0x16E0} MAPIMailbox::MAPIMailbox(2) - ResolveName[1] success for DisplayName='/o=AD/ou=location/cn=site Users/cn=Firstname.lastname'
[40430] (10/14 17:28:21.460):{0x16E0} {Firstname.lastname@<hidden>} MAPIMailbox::MAPIMailbox(2) - Mailbox opened on session 0x013a25f8 (Exchsrvrname)
[40153] (10/14 17:28:23.444):{0x16E0} PMDatabase::OpenNamedFolder: opening existing folder 'BlackBerryHandheldInfo'
[40155] (10/14 17:28:23.538):{0x16E0} PMDatabase::OpenNamedFolder: opened an existing folder 'BlackBerryHandheldInfo'
[40720] (10/14 17:28:23.647):{0x16E0} MAPI call failed. Error 'The client operation failed.', LowLevelError 1246, Component 'Microsoft Exchange Server Information Store', Context 1281
[20152] (10/14 17:28:23.647):{0x16E0} OpenDatabase() failed for Firstname lastname
[20154] (10/14 17:28:23.647):{0x16E0} User Firstname lastname not started
[50079] (10/14 17:28:23.647):{0x16E0} 1 user(s) failed to initialize

I have ran IEMSTEST utility and the test is successfully. I removed the User from BES, wiped device, waited for 10mins, added user back to BES and reactivated and got the same error.

I also saw other thread where they arae talking about space in the name but in this case its all fine.

any ideas what could be causing this ?