Exchange 2007 SP1 and Exchange ActiveSync issues

[-Sean Casey]

I recently upgraded from E2007 RTM to E2007 SP1. After performing the upgrade ActiveSync no longer properly functioned. I now receive a 0x85010004 anytime I attempt to sync. In testing I created a new ActiveSync policy and left it at the defaults and applied it to my mailbox. This has allowed my phone to sync (My device is a Treo 750 /w WM6), but no passwords or any policy settings are applied. If I make ANY change to the policy away from default syncing fails with the 0x85010004 error. I have reinstalled CAS and IIS, verified all of the security settings, etc and I still run into this problem. Any ideas?