Oh my god Dana, you just saved my life!
THANK YOU!
I have been combing the message boards and forums for almost 3 weeks now trying to fix this problem. I have colleague accessing the EXACT SAME Exchange server who are not having this problem, but I have been completely unable to eliminate it.
I'm holding my breath, but it appears your fix has done the trick.
I am going to re-post this all over the Mac / Microsoft universe. I even have a Microsoft tech trying to figure out this solution on another message thread!
13" MacBook Air mid-2011 (MacBook Air 4,2)
Dual-Core 1.8GHz Core i7
Mac OSX Lion 10.7.5 (11G63)
Outlook Mac 2011 14.2.5 (121010)
Halle-freaking-lu-jah!
not sure why this solution is not being spread around more. But to fix this issue, what you have to do it add a "" before your username. for example:
Username: \domain\username
Password: whatever your password is
Make sure you save to your keychain after. This has worked for me. I'm not sure where I found this, but it was a lifesaver. Hope it helps for you!