You need to make sure that the following is set up when attempting to use an iPhone with iOS > 4 with Exchange > 2010 SP1.
1. In the Hub Transport section under Organization Configuration, ensure that both the "Name" and "Accepted Domain" do not contain any spaces. I recommend using the accepted domain as the name. This does not matter if it is an Authoritative, Internal or External Relay. You can use the GUI to do this, i.e. right click on the domain with spaces and select properties. Or use the Exchange cmdlet
Set-AcceptedDomain –Identity <value> -Name “ValidSMTPDomainName”
2. You need to reenable inheritance of permissions from parent if you are adding privileged accounts, i.e. member of Domain Admins.
To do this, open up Active Directory Users and Computers, then click on View, and then click on Advanced Features.
Right click on the affected user, then select "Properties". Go to the "Security" tab and click "Advanced". Then enable "Include inheritable permissions from this object's parent" Click Apply and OK.
