Unaccepted Ticket

I just upgraded to Sd 7 from 6.5.4 and now whenever a customer replies to the email they get upon opening a ticket which should create a note, the note does not get applied. Additionally the team lead for the Default Incident Team gets an email saying "Unaccepted Ticket". So the note is passing thru the email queue but just not going to the note.
I did a side by side upgrade from 6.5.4.

Thanks,
Scott