Just hit the same problem with the 8.04 LTS using 2.22.1 release of
Evolution. It manifests in exactly the same way: you can't get by the
authentication step in the account set up when specifying
domain\username. I have this account setup and working in Outlook on
another machine and it works fine (so, I know the OWA address and
username/password I'm using are all correct.) Can I help gather info? If
so, please give me explicit instructions how. (I'm still relatively new
to the environment.)

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evolution-exchange: unable to setup exchange account
https://bugs.launchpad.net/bugs/25106
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