I was having a problem with my windows phone 7’s trying to sync with Exchange server 2010 sp1. I kept getting the error message “Windows phone does not support this server version” after a while I was able to fix the problem. It was really annoying because there was not much info in the net about this too. This is what I did and now its working fine.
1. Update Windows phone 7 using Zune
2. Change exchange active sync policy in the exchange server to allow sync of non provisionable devices
3. Change the password policies to remove “Require encryption on the device”
4. Also if you are using an internal root CA then you need to add that root certificate to the phone by browsing to the http://servername/certsrv and installing the certificate in the phone.
Then all should be well

