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Configuring Direct Push on Exhange 2003 SP2

I recently installed Exchange 2003 SP2 for enterprise edition.  I've been trying to configure a windows mobile 5.0 hand held device to connect to the exchange server and take advantage of direct push email.  When I enter the appropriate settings into the hand held device is says authentication fails - bad username or password.  When I check the event viewer on the exchange server I can see where the logon failed.  I'm not sure what's going on, I've tried every combination of settings for the device, but nothing seems to work -- please help.    
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poweruser32

try checking the box for Integrated Windows Authentication on the Exchange virtual root in IIS
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It is already enabled.  
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nitadmin
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