On a new SBS 2008 server, I was moving an iPhone user from his old Exchange domain, to this one. I set him up, his mailbox synced, and it forced him to add a passcode to his iPhone, and change the password to his domain account.
Having never seen this before (my first SBS 2008 server), and him telling me that he did not want the passcode, I looked around until I finally found the policy to not enforce the passcode. I edited the ActiveSync policy, and on the Password Tab, I cleared the Require Password box.
That did not clear out the passcode issue until I removed the Exchange account, and restarted the phone.
I then readded the Exchange account, and now it will not take his domain password. I've removed and readded the account, we've changed his password, and it fails to authenticate. What can I be doing wrong?