The iPhone and iPhone users who recently upgraded to the iPhone OS 3.1 faced a problem of sorts when they were unable to access the Exchange 2007 servers - and it was assumed that there was some 'problem' with the latest update!

However, Apple has clarified that it is not the upgrade that is to be blamed; and that it is exactly working in a way that it is supposed to.

The problem at hand results from the fact that, as compared to the iPhone OS 3.0 which did not identify itself properly to Exchange 2007 on any iPhone; the updated iPhone OS 3.1 now suitably identifies itself to the servers as having hardware encryption.

Earlier, users of a 3G iPhone could log in to Exchange 2007, even though the device lacked hardware encryption. However, iPhone and iPhone 3G users who upgraded to iPhone OS 3.1 cannot log in to Exchange 2007 servers requiring hardware encryption.

Elaborating that, post-upgrade, users of iPhone or iPhone 3G should ask the IT administrator to turn off the hardware encryption requirement, Apple representative, Natalie Harrison, specified: "We added device encryption information to the data that can be managed by IT administrators using Exchange Server 2007."

Harrison added: "The policy of whether to support iPhone 3G, in addition to iPhone 3GS, which always has on-device encryption, on Exchange Server 2007 is set by the administrator and can be changed at any time."