Apple Thoughts: Exchange 2007 vs iPhone

"iPhone and iPhone 3G users hit a roadblock last week trying to login to Exchange 2007 servers after upgrading to iPhone OS 3.1. Because the problems began with the latest update, it may seem reasonable to assume that the update is to blame, but it's not. In fact, everything is working exactly how it's supposed to be, according to Apple."

The problem is not with the iPhone 3GS, which still works fine, it is with the iPhone and the 3G versions. iPhone 3.1 fixed a glitch in 3.0 that didn't identify itself properly with Exchange, so now that it does, it requires hardware encryption but you can only do that with the 3GS. The only work around is with your IT admin, making sure they don't require the hardware encryption for your device. That is a simplistic explanation of the problem, but this one is out of my area of expertise. However, there is another article over at Apple Insider that goes into great detail on the problems with iPhone 3.1 and Exchange 2007, if you are inclined to learn more about this situation.