copy has been placed in your outbox Iphone44.2.1Exchange Gmail Bug

Error: A copy has been placed in your outbox. Sending the message content to the server has failed.
Steps taken to produce error:
1. Open Exchange
2. Create new outgoing email message
3. Hit send
4. The iPhone appears to be sending the messages, but then the error above appears.
5. Go into outbox and the email is there with a red exclamation point.
6. Clicking on the exclamation point and the following message appears:
Cannot Send Mail - An error has occurred while delivering this message
Mail Settings:
Accounts:
Gmail (Calendars, Notes)
Exchange (Mail, Contacts)
To fix, I have tried:
1. Deleting both the gmail and exchange accounts.
2. Adding just the exchange for email/contacts/calendars.
3. Deleting the Exchange account
4. Adding just the gmail for Mail, Calendars, Notes
5. Deleting the gmail account
6. Adding both accounts, with just notes/calendars for gmail, and mail/contacts for exchange.
Between all of the above steps I am restarting the phone.
I also checked to make sure Imap was set up within my gmail account online.
Nothing is working, and I believe I have tried every fix I can find online.
Any ideas?
Macbook Pro Mac OS X (10.6.6)