Exchange 2007 Mail issue, server rejecting password

Hi all.
We have installed Exchange 2007 server today and configured it and all windows clients and iPhones. windows clients on normal RPC settings and laptops on RPC over HTTP.
Webmail has also been configured which works fine with a trusted root certificate. webmail works fine in safari also.
we have a problem configuring Mail on two SL macbooks. when running the setup and entering the password the client app comes back repeatedly and says 'The Exchange 2007 server “exchange.domain.co.uk” rejected the password for user “username” '
i have tried this on both machines and im kind of stuck since the exchange server is fully function for all other devices.
For info, the exchange server is on SP1 rollup 9. running on windows server 2008 R2 x64
i changed the outgoing server field to be the internal IP just to check and i get the prompt for the SSL (obviously since the SSL does not include the IP. i click to import and accept which it does but i still get my password rejected.
Any ideas?

Seems like an issue with a December update. I found the following info that basically tells you to go to IIS SSL settings for the OWA (and related sites) and change the client to "accept certificate". It worked for me so hopefully this will help someone else.
The following text was found on:
http://social.technet.microsoft.com/Forums/en/exchangesvrgeneral/thread/383d130e -869f-4fce-9502-8b340904b0ba
EDIT: Found a fix for me potentially via - http://social.technet.microsoft.com/Forums/en-US/exchangesvrdeploy/thread/c1e72d 2a-d360-4ff0-b2f5-1a9ae149df18 and http://www.microsoft.com/communities/newsgroups/list/en-us/default.aspx?dg=micro soft.public.exchange.admin&mid=00d4a681-f588-4eed-b4f8-5c3645e7376c&sloc=en-us
I had an issue similar to this. Win2k3 Ex07. All of my Outlook 2007
users were getting prompted over and over for the username and
password. It wasn't checking the certificate that they had installed
via internet explorer. To fix the problem, I opened IIS on the
Exchange server and checked the following directories under the
default website (the root site(default web site), oab, autodiscover).
Under the directory security tab, click Edit in the Secure
Communications section. I had the require SSL checked and the 128bit
encryption, but under Client Certificates, it was set to ignore. Once
I changed that to Accept for each of the folders, stopped and started
IIS, I stopped being prompted all the time for credentials. Hopefully
this will help someone in the future.
Just confirmed fixed for client!!!
-IL

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