WIN2K Email setup

I have installed a new PDC running 2000 on the Network, and Demoted the current server to a BDC on the new Domain. All runs well including Log-ons, Internet, TCP/IP. My problems are with MS Outlook 97/98. All the old set-up of accounts and folders on the Workstations(NT4), which reside on the BDC(NT4), were lost. I am not sure how to set-up the new server as an email exchange server either. And workstations lost Palm hotsync auth. The message is that the WINNT folder is not accessable.