Entourage not connecting to Exchange

[jafrance]

After installing the update (12.0.1) from file (not Auto Update) to our Office
for Mac "test" machine, Entourage no longer wants to connect to our
Exchange 2007 SP1 server. Keeps returning the "Mail cannot be
recieved at this time: Bad username/password" error. The account is
fine as the user can log into OWA with no problems. I have recreated
the profile once already to no avail. The only thing left (as far as
I can see) is to reinstall Office back to 12.0.0. Any other ideas? Running on OS X 10.4.1