Hurrah, thanks Dr. Smoke
"1. By chance, have you placed an alias to the server volume in your Finder Sidebar?"
Yes, two actually. Removed them and its solved. Bit annoying that, I will put them somewhere else. Thanks a lot, mystery problem solved.
"Consult your network admin at work."
I am the network admin! Well more accurately I am the only person in our small company who knows much about Macs so I am network admin by default. "Mark, my computer won't print" again and again...