Problem solved. In case anyone has the same problem here is the solution:
1) Distribution Lists can be created with MPS 2.0 in MPSSampleWeb, however cannot be populated in the browser. The rest must be done by hand using the Exchange Server "Active Directory Users & Computers" facility.
2) "Forwarding" and "Retain & Forwarding" must be done manually in the Exchange Server "Active Directory Users & Computers" facility.
3) If you wish to forward to an external source (e.g. Hotmail) you must do this manually using Contacts in the Exchange Server "Active Directory Users & Computers" facility.
Steve