The following link is a helpful message from Microsoft regarding setting up Active Sync properly with the Exchange 2003 server.
http://support.microsoft.com/kb/817379One of our partners has also taken the time to create a helpful document to walk customers through these changes. See Below for this information.
Step-by-Step Guide: How to repair Exchangerelated
IIS virtual directories
Exchange Server depends on Internet Information Server (IIS) virtual directories for a number of functions related to Outlook Web Access, Outlook Mobile Access and ActiveSync. IIS virtual directories are generally stable, but can become corrupted or damaged by inappropriate administrative action. You can delete damaged Exchange-related directories -- but Exchange Server won't recreate them. The exception to the rule is Exchange 2000, which will automatically recreate virtual directories used by Outlook Web Access if you restart the Exchange System Attendant. Microsoft didn't remove this feature from Exchange 2003, but it doesn't work properly -- information left behind in the IIS metabase prevents the virtual directories from being regenerated. In this article, I will show you a technique to get around this problem.
Step 1: Back up existing Exchange-related IIS virtual directories
Although the current Exchange-related IIS virtual directories are damaged, I still recommend backing them up prior to deleting them, just in case something were to go wrong during the regeneration.
1. To back up the existing virtual directories, open the IIS Manager console and navigate to your server -> Web Sites -> Default Web Site.
2. Right click on the Default Web Site and select Save Configuration to a File.
3. Enter a file name to use for the configuration data, verify that the path is appropriate, and click OK.
Step 2: Remove damaged Exchange-related IIS virtual directories
There are several different methods you can use to recreate the various virtual directories, as detailed in Microsoft Knowledge Base article 883380,
1. Expand the Default Web Site container in the IIS Manager, and you will see a list of all of the IIS virtual directories included in the default Web site. To get rid of a virtual directory, simply right click on it and select Delete.
2. You will see a prompt asking you if you're sure you want to delete the virtual directory. Click Yes and the virtual directory will be removed.
3. Now we have to get rid of an Exchange remnant. Close the IIS Manager console and open the Metabase Explorer tool (located on the Start -> All Programs -> IIS Resources menu).
4. Expand the LM container to view about a dozen subcontainers.
5. Locate a container called DS2MB, right click on it and select Delete.
6. You will now see the standard "Are you sure?" message. Click Yes and the container will be deleted.
Step 3: Create new Exchange-related IIS virtual directories
The clean-up work is complete. Now it's time to recreate the various virtual directories. To accomplish this, most of the time all you have to do is to restart the Microsoft Exchange System Attendant service. Unfortunately, other Microsoft Exchange services -- including the information store -- depend on the Exchange System Attendant. This means that, if you restart it, you disconnect users from their mailboxes. Microsoft advises that, after you restart the Exchange System Attendant, you should regenerate virtual directories within 15 minutes. If they're not recreated within 15 minutes, you will have to reboot the server. I think it's better to just go ahead and reboot the server, regardless, and know for sure that the virtual directories will be regenerated, rather than risk interrupted service for your users twice.
Step 4: Reset permissions on the ExchWeb directory
The final step in the IIS virtual directory repair process is resetting permissions on the ExchWeb directory. Open the IIS Manager and navigate to your server -> Web Sites -> Default Web Site -> ExchWeb. Right click on the ExchWeb directory, click Properties and select the Directory Security tab. Click the Edit button found in the Authentication and Access Control section to view the Authentication Methods dialog box. Make sure the Enable Anonymous Access checkbox is selected; also mark off the Integrated Windows Authentication checkbox. Click OK. You may see a dialog box asking you if you want to override inheritances. If this happens, click Select All, followed by OK. Click OK a couple more times and quit IIS Manager. Your Exchange-related IIS virtual directories should now be functional.