Looks like the latest update to the MyPhone service (v1.05.2317) introduced a bug that disables SMS/text messages syncing if you don’t use an Exchange server. THe current solution (until Microsoft fixes the problem) is to go into the Registry:
Got To HKLMSoftwareMicrosoftMy Phone
Then you have to change the registry value “DisableSMSDataType” from “1″ to “0″
Hopefully Microsoft will fix this ASAP.
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