I finally got the expansion of the tree in Evolution.  
Solution:
start evolution with --offline
Example: evolution --offline

If I start evolution up normally with out "--offline" then I cannot
expand the tree item.

After I start evolution up with "--offline" then I then go to the File
menu and select "Work online"

If anyone wants me to try anything or get more details, I can reproduce
it by not using "--offline"

-- 
When upgrading from 10.04 to 10.10, exchange mail accounts no longer work in 
Evolution. When clicking the account, the folder structure won't expand and the 
account does not send or receive e-mail (although) it does appear in the 
send/receive dialog box. 
https://bugs.launchpad.net/bugs/631395
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