SBS 2008 Outlook won't authenticate, OWA works fine. IISReset fixes the issue for a few hours.

This is a weird issue that just started a few days ago with no changes to the server at all. The only change is a new user with Outlook 2010 was setup to use Outlook anywhere.

SBS 2008 - Exchange 2007 - IIS 7.0

When the issue occurs, OWA works fine internally and externally, Outlook/Mac Mail clients prompt for a password but nothing seems to work. After an IIS Reset it all works for a number of hours.

Forms based authentication and Basic Authentication are both turned on.
This server is a DC and Exchange svr and has worked flawlessly for a year or so until now.
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Glen KnightCommented:
This is a known issue, check make sure Exchange is using Service Pack 3 and if that doesn't resolve it then try the Kernel Mode Authentication stting.

I've written a guide here:

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Glen KnightCommented:
This question has been classified as abandoned and is closed as part of the Cleanup Program. See the recommendation for more details.
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