First I am sure you aware of the MS Support policy on running Ex07 in a virtual environment:
" Exchange 2007 is not supported in production in a virtual environment; however, as stated above, Microsoft Virtual Server makes a great environment for training, labs, and demos. Exchange 2007 is supported in production environments using only the 64-bit version of Exchange 2007, and currently neither Microsoft Virtual Server nor Microsoft Virtual PC support 64-bit guest systems. Exchange 2007 is also not supported in production in a virtual environment using non-Microsoft virtualization software. For details about the Microsoft support policy for third-party virtualization software, see Microsoft Knowledge Base article 897615, Support policy for Microsoft software running in non-Microsoft hardware virtualization software. "
I have seen this type of problem when the autodiscover URI are wrong.
What if any errors do you see in the event logs?
Quote - (Zirus @ Jul 17 2008, 21:13)

I have an Exchange 3 node cluster with 2 active virtual servers on it.
When I go to fail-over one of the virtual servers to a different physical server all the users who are connected to exchange via outlook receive a log-in box pop-up. If they close and reopen outlook everything is fine.
Does anyone know what I can do to be able to fail-over the virtual server and the users NOT get a log-in dialog? (their credentials don't work in that box anyway btw...)