Trouble with Stuffit and Entourage (v.X)

[Joshua Wines]

I recently updated one of my users to 10.3.5 and now he can no longer 
place a folder in Entourage and have it automatically compressed, 
Entourage says that Stuffit is not installed, but it is. The version of 
Stuffit is the Standard 8.0.2. I have seen this problem mentioned in 
other places, but I don't think I have seen the definitive answer yet. 
Here is what I have tried so far:

Repaired Permissions
Systematically replaced all of Entourage's Preferences, along with a 
few general Office v.X ones as well.
Rebuild the Entourage database (Typical Rebuild)
Using Cocktail, cleared Systems Caches, and re-did the Pre-binding.
Placed a copy of the Stuffitengine.cfm in the Application Support 
folder (for both the User, and System)

I also created a new user account and started up Entourage in the new 
Account to see if the problem happens in fresh account, and it did, 
leaving me with the conclusion that what ever the problem is, it's not 
a user issue, it's a System level one.

Can anyone give me another suggestion?
Thanks.
--Joshua.
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