MS Exchange activesync email doesn't work on my iPhone but works on others

I'm having trouble getting Activesync working for email with our work Exchange server on my 3GS iPhone.
The problem that I have is that the Exchange server appears to authenticate properly during the account setup process, but then it never syncs down any email (or folders).
Other (POP or IMAP) email accounts on the same phone work just fine.
In addition, it had been working fine for this same phone. I bought the 3GS the first day it was available, and it worked fine with the exchange server. It worked fine until recently when I changed my work password. It of course, stopped receiving new email because it didn't have the new password. But when I entered the new password it still didn't receive any new email, and since that time it has no longer received email.
If I use a colleague's 3GS iPhone or my old 2G iPhone I can set them up to sync to my exact same account on the exact same server, and they work just fine. So I know I'm entering the password and server settings correctly.
I checked the mail settings and they appear to be the same between the phones.
I have tried various combinations of deleting and recreating the mail account on my 3GS and powering down, but no luck there.
I've tried removing the mobile devices using the webmail settings.
At this point it appears that there is something wrong specifically with my iPhone.
Any ideas of what might be wrong?
Any ideas of what to try? Is my iPhone defective, time to exchange it at the Apple store?

Ok, I've made a discovery. My email will work if I erase the phone but don't restore my backup.
I used the option under settings->general->reset to "Erase all content and settings" on my iPhone.
This puts the iPhone back into the state where it is waiting to be plugged into iTunes for activation. I plugged in my phone into iTunes, but instead of choosing to restore from backup or setup as a new phone, I instead went into settings and setup my activesync mail account. This is essentially the same as what it would be with a brand new phone.
This worked. My activesync connection pulled down my mail and calendar.
So then I restored my phone from backup, and setup my activesync mail account again. It again didn't work.
So there is something that is being saved in the backup that breaks my iPhone working with activesync MS exchange.
If I don't restore from backup, what will I lose on my phone?
My pictures/movies
My application settings/files
Music, contacts and applications should all sync down so I shouldn't lose those.
Anyone else have any other ideas on what I should do based on this new information?

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