Here's a little gem I found in a response post to an article I was reading which worked for me immediately in getting NTLM authentication to work on Exchange 2007 / Outlook Anywhere / Outlook 2007 / Windows Server 2008:
1. In Exchange Management Console, go to Server Configuration > Client Access, double-click the server name, go to Outlook Anywhere (last tab), switch from Basic to NTLM.
2. in IIS, expand your server, go to Sites > Default Web Site > RPC, then in the “Features” page double-click Authentication, right-click Windows Authentication and choose Enable.
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