Public folders can be administered and created using the 32-bit Exchange clients such as Exchange and Outlook, but also by using other tools such as Windows Explorer etc. 

To create a Top-Level Public Folder via Outlook perform the following:

1. Start the Outlook client

2. Expand "Public Folders" and double click on "All Public Folders"

3. From the File menu select New - Folder

Note: In Outlook 2003 the same process looks like this:

4. In the dialog enter a name and click OK

Note: In Outlook 2003 the process looks like this:

5. To create other non-top-level folders just select the folder that you wish to be the parent and select New - Folder from the File menu. You will then be able to name the sub-folder as with above.

6. You can also drag any folder from your own Mailbox or from another top-level PF to the PF list.

To create a new Public Folder from within Windows Explorer do the following:

1. On your Exchange server open Windows Explorer and go to your M:\ drive.

2. Drill down to the Public Folder store.

3. Right click it and choose New.

4. Give it any name you want.

Note: To perform some client-side security settings you'll have to return to Outlook and change the settings from there.

Exchange 2003 note: Exchange Server 2003 does not expose drive M: by default. In order to access Alternate PF Trees via EXIFS in Exchange Server 2003 you'll need to re-create drive M: