What I noticed was that the server name referenced was the name of the Public Folder Store. For this environment we had:
Exchange Server name SRV-01
Public Folder name SRV-01-PF001
The OAB generation server showed as SRV-01-PF001 (Public Folder Instance) instead of SRV-01 (Server Name). If you try to Update the OAB with the setup an error about the Exchange Server could not be found pops up.
The solution is to right click on the OAB in the Exchange Management console and select Move:
Follow the dialog boxes and change the OAB Generation server to the correct server. If it is successful, just wait for replication to occur (~15 min) and then right click on the Offline Address Book and click Update:
Once this completes check the event log for the 1028 and 1018 Event log entries. There should not be anything at this point now that the server is correct.
To get a closer look at the OAB generation process, or to see why the Move or Update failed, just change the Diagnostic Logging for the server:
Once the Diagnostic Logging settings come up, scroll down and find the MSExchangeSA service, expand this and select OAL Generator. Then check either High or Expert. Use Expert only if you need more information.
Once changed, click Configure.
Then re-run the Update process for the Offline Address Book. Check the event logs to see what errors are generated.