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Event ID: 535 Source: smtpsvc

Virtual Server : The drop directory , for * could not be created.
From a newsgroup post: "I have done some research on this and we do not seem to have a lot on this problem. One thing that I have discovered is that the following steps seem to resolve the issue:  

1. Convert Active Directory DNS Zone to a primary zone
2. Delete the zone
3. Recreate the zone
4. Change it back into an Active Directory Zone".
SMTPSVC will continue to move files in the pickup directory to the queue, but will display this error rather than deliver the messages. Log settings had no effect during this time (no logs were produced; no other error messages appeared). Fix is from ME288538. Remove and reinstall SMTPSVC from the control panel->windows components wizard.

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