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Here is the KB article from Apple with a "Work Around" http://support.apple.com/kb/TS2941 Thanks Ahmed From: MSU Network Administrators Group [mailto:[log in to unmask]] On Behalf Of Issawi, Ahmed Sent: Friday, September 11, 2009 9:44 AM To: [log in to unmask] Subject: [MSUNAG] Iphone OS 3.1 and Exchange... According to this Apple user forum discussion, if your company's Exchange server has encryption enabled on its ActiveSync settings, then anyone with the 3G model running the new 3.1 OS will find that they can no longer connect. Instead they get this error message: "The account '---' requires encryption which is not supported on this iPhone." Just thought it should be known Thanks Ahmed