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If you are using mobile devices with Windows Phone 8, and you sync mail with Exchange Server, you can get Error Code 86000C29
This problem is caused by Microsoft Exchange ActiveSync policy which prevent to sync your mailbox with mobile device with Windows Phone 8
When your mobile device is trying to sync mailbox from Exchange Server, first ActiveSync policy is enforced for this device. If device can’t pass policy requirements than it can’t sync mailbox.
Because mostly ActiveSync policy Require Encryption on Storage Card.
So to resolve this issue you need to open EMC, Organization Configuration, Client Access, tab Exchange ActiveSync Mailbox Policies.
And you need to change ActiveSync Policy, and check option Allow non-provisionable devices
This option allow to sync mailbox with older mobile devices and also with devices with Windows Phone 8 without memory slot.
More information about ActiveSync Policy in Exchange Server can be found here: