Public bug reported:

If you create the exchange account with the exact same settings that
worked in 2.4 and 2.6 the authentication dialog comes up when attempting
to scan folders but never finishes. When typing in my password it states
that authentication has failed. Like previously stated these same
settings work wonderfully with 2.4 and 2.6 on Solaris 10 and RHEL4. I
can find no backlog of information in the debug other than
authentication failed. Steps to reproduce this error:

1.) Upgrade to Edgy
2.) Exchange Connector Setup
3.) Start evolution
4.) Bang head on desk
5.) Repeat

Thanks for any help and I hope that this bug can be fixed soon. Exchange
support is priority #1 in Corporate world.

** Affects: evolution-exchange (Ubuntu)
     Importance: Untriaged
         Status: Unconfirmed

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Exchange fails to allow authentication
https://launchpad.net/bugs/60501

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