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Contivity is a pain, but you can work around it. What you have to do is make sure that the phone is NOT connected to active sync when you start the vpn (remove it from the cradle, disconnect it from the computer). If it is, activesync will fail and you'll have to soft reset the phone AND disconnect the VPN before it will work again. If you connect the vpn and THEN cradle the phone, it should work fine.
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