Sounds like the handheld may not be accepting the policy. Once it shows Error status, the BB usually needs to be re-activated to successfully receive the policy. The POLC log should have some more detail, try the following:
1. Send a user a new policy or an updated policy that you haven't tried yet. **Note the time you sent it**
2. Monitor the status of the Policy. If it changes to Error or never changes from reveived then check the POLC log for the users PIN or email address for the time you sent the Policy and see what shows for that user from there on
If worse comes to worse you could contact RIM support for a log review. They will be able to determine whats going on.
You could try a re-install but if the handheld is receiving the Policy but not applying it then it sounds more like a handheld issue. I've seen it happen before but usually a hard reset fixes it. This is a strange issue.
How many users do you have on the BES? If the re-install doesn't work it may be a database issue. I had a user once with a new 4.1 BES and the Policy would always get rejected because the ITPolicyTable was corrupted during the install. A new DB would be a last resort option, I would recommend the following:
1. Backup the current DB
2. Create a new DB (BESmgmt2 or BESTest) usign the Switch Database Wizard in the BlackBerry Server Configuration
3. Using the newly created DB, add some users and test sending a new policy and an updated policy
If that doesn't fix it then use the Switch DB Wizard again to go back your original DB. That would only leave the handheld's as you've tested everything on the BES side.
Keep us posted and good luck.
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