Active Exchange Sync- Password Policy related questions

Under Client Access on Exchange 2007 (2008 STD X64) then Client Access and Password. When we minimum password length to 6 it pushed the policy to the phones. Unfortunately somehow the password gets corrupt and my boss and I were forced to remote wipe our phones due to this. After my restore of the backup ironically the password that I chose which locks me out resumes to work. So I have some questions.

1.Has anyone else noticed corruption of passwords when length policies are changed?

2. I noticed Require alpha numeric password in Client Access however the phone does not appear to allow you to choose letters on the device. How do I get the phone to switch to letters? We did not get far with this.

3. Are there any good password reset methods? If I go to Recipient configuration and Mailbox, manage users mobile device I see an option called recovery password. However if pick Recovery Password it is grayed out and does not seem to have a way to initiate it.

In closing I just updated my firmware so we will see if this solves the issue. I do anticipate folks screwing their passwords up so there must me a better solution then restoring the phone every time that happens.