After upgrading to iPhone OS 3.1, some iPhone 3G owners experienced problems when trying to login to Exchange 2007 servers, however, iPhone 3.1 upgrade wasn’t to blame for these problems, and according to Apple all is working as it should be now, reports Cnet.

Natalie Harrison of Apple explained that Apple added device encryption to the data that can be managed by IT admins using Exchange Server 2007, and the policy whether to support the iPhone 3G along with the iPhone 3GS is set by the administrator and can be changes at any time.

So basically this means iPhone OS 3.1 now properly identifies itself with Exchange 2007 as having the required hardware encryption which was what the problem was.