Bad news if you have an iPhone 3G and are considering upgrading to latest iPhone OS , i.e. iPhone OS 3.1 which Apple released a couple of days back. Sadly there are report from MacRumors and TYUW that iPhone 3G users who have upgraded to iPhone OS 3.1 are unable to access their Microsoft Exchange accounts.

iPhone 3.1

This unfortunate event is taking place due to device’s incompatibility with Exchange’s server side encryption. However if you own iPhone 3GS, you should not be worried about this. While iPhone 3GS supports this device level encryption,devices such as iPod and iPhone do not.

Surprisingly with iPhone 3.0, even users with iPhone 3G were able to access their Microsoft Exchange accounts and the device fared well with the iPhone 3.0‘s encryption option. Apple has been pretty much active and has come out with a temporary solution. Apple recommends that the affected users ask their system administrator’s to disable the Device encryption for syncing.