Apple iPhone OS update 3.1 was released on September 9th. Since it's release thousands, if not millions of people have updated their phones. Some users with non-3Gs iPhone's who work in an environment where their email is hosted on Exchange 2007 reported that their phones stopped syncing to the server.
iPhone 3.1 included a fix for a bug that didn't correctly implement MS Exchange 2007 encryption. Well, that fixed the issue for the newer 3Gs models, but created more problems for users of the older model phones.
Apple's suggestion? (from http://support.apple.com/kb/TS2941)
When using a Microsoft Exchange account on an iPhone or iPod touch, the following error message may appear:
The account "______________" requires encryption which is not supported on this iPhone.
iPhone, iPod touch, iPhone 3G
iPhone OS (beginning with the iPhone OS 3.1 update) can enforce the Exchange ActiveSync mailbox policy requiring encryption on the device. If your Exchange Server administrator has selected this option, only devices that support device-level encryption are allowed to sync Mail, Contacts, and Calendars.
To reestablish syncing, have your Exchange Server administrator change the mailbox policy to no longer require device encryption.
Note that iPhone 3GS supports device encryption.
I am on the Exchange team here and my job, and ummm... I don't think so! Come on Apple, you can do better than this. Notice the Note that iPhone 3Gs supports device encryption. So hurry everyone! Go right out and upgrade! NOT!!!