diff --git a/res/values/strings.xml b/res/values/strings.xml
index ccba1ec71..79a33418b 100644
--- a/res/values/strings.xml
+++ b/res/values/strings.xml
@@ -590,6 +590,11 @@ save attachment.</string>
     <!-- "Setup could not finish" dialog text; e.g., Cannot safely connect to server\n(TLS Not Supported) -->
     <string name="account_setup_failed_dlg_certificate_message_fmt">Cannot safely connect to server.\n(<xliff:g id="error">%s</xliff:g>)</string>
 
+    <!-- Dialog text for ambiguous setup failure; server error/bad credentials [CHAR LIMIT=none] -->
+    <string name="account_setup_failed_check_credentials_message">
+         The server responded with an error; please check your username and password
+         and try again.</string>
+
     <!-- "Setup could not finish" dialog text; e.g., Cannot connect to server -->
     <string name="account_setup_failed_dlg_server_message">Cannot connect to server.</string>
     <!-- "Setup could not finish" dialog text; e.g., Cannot connect to server\n(Connection timed out) -->
diff --git a/src/com/android/email/activity/setup/AccountCheckSettingsFragment.java b/src/com/android/email/activity/setup/AccountCheckSettingsFragment.java
index 06e14c815..31d98f825 100644
--- a/src/com/android/email/activity/setup/AccountCheckSettingsFragment.java
+++ b/src/com/android/email/activity/setup/AccountCheckSettingsFragment.java
@@ -580,6 +580,9 @@ public class AccountCheckSettingsFragment extends Fragment {
                             ? R.string.account_setup_failed_dlg_auth_message
                             : R.string.account_setup_failed_dlg_auth_message_fmt;
                         break;
+                    case MessagingException.AUTHENTICATION_FAILED_OR_SERVER_ERROR:
+                        id = R.string.account_setup_failed_check_credentials_message;
+                        break;
                     case MessagingException.IOERROR:
                         id = R.string.account_setup_failed_ioerror;
                         break;
diff --git a/src/com/android/email/mail/MessagingException.java b/src/com/android/email/mail/MessagingException.java
index 4cd120531..cdf0cf0ff 100644
--- a/src/com/android/email/mail/MessagingException.java
+++ b/src/com/android/email/mail/MessagingException.java
@@ -59,6 +59,8 @@ public class MessagingException extends Exception {
     public static final int AUTODISCOVER_AUTHENTICATION_FAILED = 11;
     /** Autodiscover completed with a result (non-error) */
     public static final int AUTODISCOVER_AUTHENTICATION_RESULT = 12;
+    /** Ambiguous failure; server error or bad credentials */
+    public static final int AUTHENTICATION_FAILED_OR_SERVER_ERROR = 13;
 
     protected int mExceptionType;
 
diff --git a/src/com/android/exchange/EasSyncService.java b/src/com/android/exchange/EasSyncService.java
index 69117a1e8..d974f7f1e 100644
--- a/src/com/android/exchange/EasSyncService.java
+++ b/src/com/android/exchange/EasSyncService.java
@@ -142,6 +142,8 @@ public class EasSyncService extends AbstractSyncService {
     static private final String AUTO_DISCOVER_PAGE = "/autodiscover/autodiscover.xml";
     static private final int AUTO_DISCOVER_REDIRECT_CODE = 451;
 
+    static private final int INTERNAL_SERVER_ERROR_CODE = 500;
+
     static public final String EAS_12_POLICY_TYPE = "MS-EAS-Provisioning-WBXML";
     static public final String EAS_2_POLICY_TYPE = "MS-WAP-Provisioning-XML";
 
@@ -466,6 +468,10 @@ public class EasSyncService extends AbstractSyncService {
             } else if (isAuthError(code)) {
                 userLog("Authentication failed");
                 resultCode = MessagingException.AUTHENTICATION_FAILED;
+            } else if (code == INTERNAL_SERVER_ERROR_CODE) {
+                // For Exchange 2003, this could mean an authenticiation failure OR a server error
+                userLog("Internal server error");
+                resultCode = MessagingException.AUTHENTICATION_FAILED_OR_SERVER_ERROR;
             } else {
                 // TODO Need to catch other kinds of errors (e.g. policy) For now, report the code.
                 userLog("Validation failed, reporting I/O error: ", code);