Make sure that in IIS, the MsActiveSync dir is set to require SSL (but not 128bit) and the Exchange dir is NOT set to require SSL. When you're putting the mail server address in the iPhone, only use
http:// even if it's SSL and check the SSL box at the bottom. Make sure forms based auth is disabled on the Ex2003 server and perform an iisreset from cmd and confirm tcp/443 is publicly open to the Ex2003 box.
~ CFJ