Getting an error when trying to sync Active synch with exchange

How do I resolve the following:

I get an error 0x85010004: "Your account in Microsoft Exchange
Server does not have permission to synchronize with your current settings.Please check with your Exchange server Administrator"

If I go to the http domain/OMA .... I do get the authentication challenge to login, I can login and view the exchange information.

When I configure the server in Active Synch on the phone.. and try and log in I get the error above.  
One piece of information that might help in the resolution is ... in my web browser i type for the address resolution
I put that as the domain in the phone  when I look at the settings again... I see  no /oma  I don't know if that is a problem or not.   Is it possible that it will not keep the directory switch and therefore not be looking at the right location in exchange?  
Please advise.
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sstiltonAuthor Commented:
Found the solution.... I had to go into IIS Management and open Active Sync website and remove the directory security... which was only allowing access from internal addresses not from the outside world.  


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