Ok I have been thru this like 100 times and I was was missing something.
I installed my First Exchange 2007 on a non AD machine to test things out. Since it worked good I installed Exchange 2007 on my production machine, moved over the mailboxes and connectors, created a new Public folder, and moved the replication publicfolder items over as per insructed. However I still get the error when I do it from the command line or GUI- When I go to remove it says it's in use by a mailbox store.
When I run Get-PublicFolderStatistics -Server <server with public folder database to be removed>
it returns nothing which is what I want.
SO that leads me to how to do this ?
Identify all mailbox databases that use the public folder database that you want to remove as their default public folder database.
Which isn't very clear. In actuallity it is pretty simple - go to the GUI and select Each mailbox store under each storage group on each server. Right click, select properties, and Client Tab. make sure the clients are not assigned to the Public folder you a getting rid of.
Man I wasted 1 day on this. And it was so easy in the end.