It is my personal phone.......but the passcode came up when I set it up to access my company email account via OWA. Maybe my company has the rule that for the account to stay I have to have a passcode on my phone. I need to check further in to this. Thanks for the feedback.
I think it is 3.0 I have a 16GB 3G and went in to change it to off and I'm not able to as well. It only gives the option to change the code but there is no toggle for OFF. I'm also our Exchange administrator and we don't have any restrictions to force the use of a phone passcode. THe phone passcode has nothing to do with the Exchange Active Sync.
I just checked and this is what mine looks like (on 3.0) Settings->General->Passcode->input 4 digit code-> and then it gives the following options; Turn passcode off, change passcode, require passcode immediately/after 1 minute/after 5 minutes/ete, erase data.
Easier, yes, but it would render the feature useless. If you lose your phone, you don't want someone to be able to turn the passcode off. If you have it set to "1 hour" and you lose it fifteen minutes after you input the code, someone who finds it will be able to access it (for 45 minutes) but you don't want them to be able to turn it off (or change it to a number you don't know so you can't access it if you get it returned). That is the rationale behind requiring the passcode be entered before it can be turned off.
I had the same problem and it is an Exchange setting preventing you from changing your passcode. If using Exchange server 2007 go into Organization configuration the client access then double click windows SB5 mobile mailbox then under password uncheck the "require password" box. Then you will be able to turn passcode off.