Exchange Basic Authentication Fails after Server Update

It appears that since updating our 2 DCs (Win 03 Enterprise SP2) with windows update released this week (fully patched before), users using Basic Authentication all failed to connect to our Ex 03 SP2 server.  

Domain users connecting using NTLM has no problem.  Our Ex server has not been updated yet pending update schedule.

Can anyone suggest how to trouble shoot?  Thanks a lot.
raykkhoAsked:
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JuanLocoCommented:
I'm tracking down a similar issue that happened this morning after our 2003 DCs and 2010 Exchange server installed updates. Similar issue with Autodiscover not accepting non-administrator credentials using basic authentication. I'm going through the updates but this one looks like an interesting, potential culprit so far:

http://support2.microsoft.com/?kbid=3002657
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raykkhoAuthor Commented:
Yes, this is also the KB I have been looking at, just wonder what we can do now. Thanks for letting me know that I am not alone, although not so good for you :)
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JuanLocoCommented:
FYI, I uninstalled this update from my DCs and everything is working again. Some more info here

http://www.infoworld.com/article/2895022/security/problems-reported-with-microsoft-patch-kb-3002657-and-a-warning-on-kb-3046049.html
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raykkhoAuthor Commented:
Thanks a lot, I also read the same article but thought it was unrelated, I shall uninstall the KB3002657 and keep my fingers crossed.
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raykkhoAuthor Commented:
http://www.infoworld.com/article/2895900/security/microsoft-netlogon-patch-kb-3002657-woes-continue-kb-3032359-cisco-anyconnect-fix-confirmed.html

I tried the ">> Computer Configuration >> Windows Settings >> Local Polices >> Security Options >>Network Security: LAN Manager authentication level >> Send LM & NTLM responses" but didn't work for us.
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raykkhoAuthor Commented:
uninstalled 3002657, things working again, thanks for the tip.
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