I had the same problem in fully upgraded Intrepid, including a bunch of
Evolution upgrades that appeared today. But I got it to work with the
help of this thread and some experimentation.

Here's my version of the voodoo:

1. Deleted the account in the Evolution Preferences dialogue and exited
evolution.

2. Set up the account anew using exchange-connector-setup-2.24. The only
problem here is that it asked me for the GC server, which took a little
research to find, but I think this is a local issue that has existed for
some time. I did not include any host name in my user name, just the
plain letter-only name. The OWA address was
"https://mail.mycompany.com";. These values are the same as in my
previous, working, Gutsy environment. Everything seemed to work fine.

3. Started Evolution. It tried to access my folders and failed, but it
seemed to try harder than before. The window took some time to open, and
then it kept "Scanning folders" for half a minute or so before it asked
for the password again and then gave up.

4. Edited the account in the preferences, cancelling when asked for my
password. On the Receiving Email tab, I noticed that the value in the
OWA URL box had been garbled: it said "http" instead of "https", and my
Firstname.Lastname had been appended to it. I changed it back to my old
value, "http://mail.mycompany.com"; (without any slash), and also cleared
the Mailbox box. Then I clicked Authenticate, and gave my password when
asked. The result was that my Firstname.Lastname reappeared in the
Mailbox box, but the OWA URL stayed the way I typed it.

5. OK-ed my way out of the preferences (which at one point caused a
freeze for about 20 seconds), exited Evolution, and restarted.
Everything was fine.

-- 
Evolution will not authenticate on Exchange
https://bugs.launchpad.net/bugs/207723
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