So when users are signing onto communicator 2007, the get in fine, but all their contacts says presence unknown, but when the external user IM on the contacts IM communication is fine, is there a setting on OCS that I need to enable so external connection can see internal presence information?
No, there's no special setting for presence - it's all regular SIP traffic just like IMs. Have you tried initiating new conversations from both sides? You likely have some kind of firewall misconfiguration.
Mike Stacy | Evangelyze Communications | http://www.evangelyze.net/cs/blogs/mike
If your Edge is in a perimeter network than you need also ports from your dmz to the inside network and vice versa. Look at the deployment guide for all necessary ports.