Comment 18 for bug 207723

SOLVED:

actually to get around this issue a coworker of mine found out that if you create an entry in the /etc/hosts file mapping the ip of your the exchange server to the hostname of the server it actually was looking for it worked.

in my case anyways when it would try to authenticate it would be fine, but when actually connecting to the exchange server it was trying a different server, so not sure if this would be a bug or something to do with our setup.