Exchange email received but not marked as read or deleted

I have an iPhone4 with iOS 4.1 (8B117) and an Exchange email account through my work. The Exchange server is Exchange2007, SP1, Rollup 7. This worked fine until recently. When I read or delete my email on my desktop client it doesn't sync the new status to the phone. New mail is received on the device so I see it. What happens is that the number of unread messages keeps increasing on the phone until I manually go through and read/delete them on the phone.
Company support says there isn't any setting to modify on the Exchange server, the only setting is whether the account is enabled for ActiveSync (it is). I have deleted all email accounts on the phone and then setup the Exchange account only, when it is sync'd the first time the same number of unread messages appear that were there prior to deleting the account.
I'd appreciate any assistance I can get for this. Thanks in advance.

I believe I have found the solution to this so I wanted to post an update. I was working with my company's messaging team and I asked them to disable my ActiveSync account and then enable it again. When they disabled it they noticed that I had 2 devices available in the configuration. The only thing I can think of is that my iPhone 3G and 4 had been setup as different devices. He disabled the ActiveSync config, I deleted my email account on the phone and then powered the phone off. He setup my ActiveSync and I re-added the email account to the iPhone. It now works as it should, problem solved.

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Message Edited by paulwilko on 22-Jan-2009 01:24 PM

Can you point us to these other posts around the web you mention? You say you are running your own mailserver and that the issue is that the connection drops after the phone connects to the server but before the transfer of mail is actually done/ Which mailserver are you using? Are you SURE you have set up all configuration details including whether you need a login for the server to send mail (and possibly a separate login as indicated HERE?
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