I'm having this exact problem too: disable/enable to MfE account lets me sync once but fails next time, or in the very end stages of first sync. I took the logs, but can't transmit them yet. In short activesync.log says: [error], Transfer 4343184 : failed with error 3 [error], AS_LIB : Received HTTP status 60003. Factory not created. Couple of lines later it mentions that JobFolderSync(0x33c218) of job sequence of above errors "completed with bad code 60003, abort". Then the job sequence is "done with code 60003".