'The account requires encryption which is not supported' after 3.1 upgrade

HELP!
Upgraded to 3.1 and got the following regarding my Exchange email from work:
POLICY REQUIREMENT
The account XXXX requires encryption which is not supported on this iPhone.
(Disable)
Help. What does this mean?
Do I need to go back to 3.0? Why would they change something to 3.1 to not make it work with my Exchange server.
Is there something I need to change or fix on my phone?... really dont want to go back to 3.0 (and don't even know how to)
Help please

Got the same thing.
My guess is there is an indication from the Enterprise Exchange server that data encryption is required, given that corporate suits are so enamored with being paranoid.
WIth 3.0, that indication was ignored, but in 3.1 it is apparently checked, and since the iPhone 3G does not support encryption (3GS does) it fails and the account is disabled.
I will talk to my IT dept. tomorrow, but I don't expect any sympathy. But, I don't really care as it's my phone and the company doesn't pay for it.
If you have a company-issued phone you probably should not update without your IT permission...

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'The account requires encryption which is not supported' after 3.1 upgrade

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