When you try to generate an offline Address Book, you receive:
An error occurred while generating the offline Address Book (OAB). To view details, see the application event log in the Windows NT Event Viewer on the offline Address Book Server. Microsoft Exchange Administrator ID no. c1031662
Additionally, the event log contains:
Event ID: 5004
Description: Generation of the offline Address Book is complete.
Result: An error occurred.
Generation of an OAB requires the default %SystemRoot% permissions of Everyone - Full Control, including all sub-folders.