Exchange 2010: ActiveSync not available (HTTP error 401)

A colleague received the following error message today on an Exchange 2010 server when he tried to set up an Active Sync account (HTTP 401):

HTTP 401

Error 401 received from the server, but no authentication methods are supported.

The cause was as follows:

In the Exchange administration console under "Server configuration" -> "Client access" -> "Exchange ActiveSync" the checkbox "Standard authentication (password is sent unencrypted)" was missing.

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After the check mark was set, ActiveSync worked perfectly

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