Contact Sharing in Outlook XP w/Exch2000

When a user 1 assigns permissions for another user (lets call him user 2) to view and make changes to their contact list. When User 2 “opens another users folders” The contact list opens fine but User 2 can not see or browse any sub folders of the contact list even though they have permissions to. User 2 is also a delegate of the mailbox. Any help would be apprecated