Currently, activesyncd always connects to the server with NTLM auth enabled (using SOUP_SESSION_USE_NTLM).
Outlook.com rejects the connection with an error complaining about the authentication mechanism, without attempting to specify an alternative. Other Exchange servers seem happy to not reject the conection but specify Basic auth when auth is required.
Consideration must be given to why NTLM is currently being specified and whether anything would break if it was removed. However, removing it seems to work with outlook.com and with my company Exchange server.
See also the mailing list discussion at http://comments.gmane.org/gmane.comp.mobile.syncevolution/4783
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