BES 4.1.2 on Windows 2003. Clean install, brand new. One user added, working fine.
Went to add second user - failed to apply IT policy, or forward messages. Tried to wipe the device, then try again - no go.
upgraded the firmware (8700c) to latest (4.1.0.377) - tried again, no go.
Asked Cingular to swap the BB (suspected a bunk phone and was looking for quickest return to service) - new phone - added, IT Policy applied, forwarded two messages, then started to "fail to forward"
resent IT policy - error in applying it, and im back to where I was yesterday on this issue.
BES with Exchange - one user is working fine (same store as this user - not a permissions thing at all that I can see)