Ok, I did some digging...
I found this MS KB article:
http://technet.microsoft.com/en-us/library/bb430769.aspx
Within, it says the following:
If you have Windows Phone 7 mobile phones in your organization, these phones will experience synchronization problems if certain Exchange ActiveSync mailbox policy properties are configured. To allow Windows Phone 7 mobile phones to synchronize
with an Exchange mailbox, either set the AllowNonProvisionableDevices property to True or only configure the following Exchange ActiveSync mailbox policy properties:
- PasswordRequired
- MinPasswordLength
- IdleTimeoutFrequencyValue
- DeviceWipeThreshold
- AllowSimplePassword
- PasswordExpiration
- PasswordHistory
- DisableRemovableStorage
- DisableIrDA
- DisableDesktopSync
- BlockRemoteDesktop
- BlockInternetSharing
My guess is if this information doesn't also apply to the Win8 Metro Mail client, there is probably another set of similar information.
In this article:
http://social.technet.microsoft.com/Forums/en-US/exchange2010/thread/d1c280b1-f6e0-44b9-aef8-797d223da5bb
There is an issue supporting encryption on the SD Card on the Surface. For those having an issue with Exchange, do you have an SD card? What happens if you remove it and try again?
Keep in mind, these apply to current Exchange server environments, so no guarantee these settings even exist in Exchange 2003.
If anyone can try without SD Cards, or verifying the Exchange policies are setup per the first link so they are compatible with Windows Phone 7 that would be helpful/