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Thanks to Dominic for this detailed post on Exchange 2007 Compatibility with CRM 3.0.
It has been a definite pain for partners selling Exchange 2007 along with CRM 3.0. But here is the reason why it is tough to make them work together without Exchange 2003:
CRM 3.0 and Exchange 2007 Compatibility by Dominic Pouzin
Best,
pk