Fixing a major but unacknowledged bug in the operating system, last week's iPhone OS 3.1 update has rendered most iPhones and all iPod Touches incompatible with Exchange 2007 servers that require on-device data be encrypted, a standard safeguard used by businesses.

In other words, Apple has fundamentally betrayed its iPhone users and the businesses that have either explicitly or implicitly supported the device.

If you're like me, you probably ran the iPhone OS 3.1 update late Friday along with all the other Mac OS X updates. And perhaps, like me, you found your device no longer syncing to your company's Exchange 2007 Server. I, for one, assumed something had changed on the back end. After all, a dot-one update is a bug fix, so there shouldn't have been anything major to watch out for. But I learned Monday it was the update itself that was to blame.

More: http://computerworld.com/s/article/9138042/