I suspect this is an android issue that the security policy is not removed when you delete an account. Preferred Solution. I Had to create a new exchange policy just for myself(on the exchange server, yes I'm the admin)
Deleted my account on my cell phone, thunderbolt . Rebooted my cell phone. Was able to set the password to none. Created a new account on the cell phone. screen no longer passworded and exchange mail works.

More exchange 2007 on sbs2008 default is to password.