i was asked this today and have done it several times my self but today i am going to be a little bit lazy and link to a blog post where it is better explained then i can do it well in the time i have!

http://www.stevieg.org/2010/08/federation-onpremise-outlooklive/

 

it has also been updated to suit SP1 in exchange …. enjoy! and thanks to the original author!

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