TUAW is reporting that Google Apps users who tried to setup their account using Microsoft Exchange (ActiveSync) ended up with auto-lock automatically set to 1 minute.
“Apparently this is due to the security certificates that Google uses with its Exchange servers. The servers can force security options on compatible devices, which your iPhone becomes once it is running iOS 4.
To be clear: if you have a regular Gmail account and set it up using Exchange, this auto-lock requirement will not be triggered. But if you use Google Apps for your personal domain, it may.”
Some Google users have also reported other sync issues with iOS 4, head over this thread if you’ve been experiencing problems too.