Tzarcone, there is a mistake with your directions, which prevents activesync from working properly.
the (00001017) 4119 registry value should be changed to 156 not 16.
I changed it in Hex Workshop manually (fourth dot to the right of the key name is the value, change it to 156), then restored, and bingo activesync working with exchange again just fine.
This should be changed for everyone though, cause who knows what other system processes need admin rights.
btw, after doing this, you need to re-enable the server sync settings before it will work.
Explaination: 00001017 is the 4119 security policy, that controls who has admin privilages (Grant Manager). Orig value is 140 (128 + 8 + 4)
See Here You add up each of the numbers for the roles you want to have admin rights and put the total in this registry key. You changed that to 16 which gives admin right ONLY to the user, but takes it away from other important security roles (including whatever one activesync uses) what you should do is add 16 to the number 128 + 8 + 4 + 16 = 156
Originally Posted by Posted recently by TZarcone
It is a shame that Sprite didn't have the intestinal fortitude to stand up to M/S. I am sure a ground swell of support could have started from our community however with posts like these 
phone can be duplicated in our existing phones without having to kowtow to Microsoft. 
and a big
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