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Hybrid Exchange Online setup with on premise public folders, certificate issues?

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We have a Hybrid Exchange setup with Exchange Online (v15 tenant) and Exchange 2010 on premise.

The hybrid configuration for the most part is working, what I am having an issue with is getting on premise public folders to show up for cloud exchange users.

I followed the official documentation here (http://technet.microsoft.com/en-us/library/dn249373(v=exchg.150).aspx) and it kind of works.

When I am accessing Outlook on a public wifi I am able to login to Outlook as the cloud user and retrieve the cloud live/archive mailboxand on premise public folders show up in Outlook.

When I am accessing email via Outlook as a cloud user on the same LAN as the on premise exchange, the cloud user makes the connection for live/archive/active-directory mailbox but fails to create a proxy connection for the on premise public folders.

The error I get is a...


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