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Schedule appointment issue in Outlook 2003 and 2010

One of my clients has Exchange 2010 and he has this issue.

If I create a schedule appointment directly on the red room is shows as busy. If I create a schedule appointment on my calendar and invite red calendar it shows as tentative. This only happens on computers that have office 2010 and OWA. Outlook 2003 shows the appt as tentative as shown below. Why?

 

 

 

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