Log file produces the following error:
Java does not natively support utf7 encoding. This is usually produced from older email clients. The error can be removed by simply added a libary to your java runtime environment.
1. Download the utf7 library from http://sourceforge.net/projects/jutf72. Install it into the base classpath at $JAVA_HOME/jre/lib/ext
3. Restart Novell Service Desk.This will now decode these emails without any errors.