Recently we installed a new Server 2008 SBS server and during the process of setting up e-mail one of the users added access for his iphone, which requested he create a passcode something he considered very annoying. After a bit of seaching we found it was caused from a setting that the Exchange server controlled.  Here is how you can remove it if you are an admin to the exchange server and don’t mind removing a some of the default security options.

Login to a machine with the Exchange Management Tools installed

Open the Exchange Management Console

Expand the Organization Configuration

Click on Client Access and then choose the password tab

Remove the check from the box that says Require Password 

Once the policy is pushed back out your users should be able to remove the passcode from their phones. 

Enjoy access to your e-mail without a passcode.