Also, maybe run 'IEMSTEST.exe' from the BES Server (it can be found in the TOOLS folder of the Installation Package). This will allow you to choose the affected user and then test the BES Service Account can create and delete a folder in the user's mailbox.
Other things to maybe try, run outlook using the 'Outlook.exe /resetfoldernames' and 'Outlook.exe /resetfolders' switches.
If all else fails, remove the user from the BES (selecting to remove the hidden folder from the mailbox), then add them again and re-activate the device. Note: This will lose any customisations such as manually created shortcuts, Auto Text, etc.
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BES 5.0.3 MR4
Exchange 2010 (SP1 RU3)
SQL 2008 R2
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