3.1 now can't turn off passcode

Before updating, I had the passcode set for 1 hour (I knew I needed some protection in case the phone was lost/stolen but I didn't want to unlock the phone all day long). Since the update, my options for passcode time is limited to 5 minutes and less. And, there appears no way to turn off the passcode!!
Even the genius bar couldn't help me with this today. Can you guys??

If you use an Exchange account, those restrictions may be imposed by the Exchange Administrator. You should check with him or her.
"Additional device restrictions are now available, including the ability to specify the length of time that a device can be left unlocked, disable the camera, and prevent users from taking a screenshot of the device’s display." http://manuals.info.apple.com/enUS/Enterprise_DeploymentGuide.pdf

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