IPhone 4s/ gmail using Exchange - password no accepted!!

Am after some help here and I know I am not alone with this issue but I am yet to find a solution.
Proud owner of a 4S as of yesterday but trying to add my Gmail account using Exchange is not working at all - I keep getting prompted to enter my password. I know this password is correct as I am logged into my PC.
When I set up my Gmail account using Gmail settings this works fine - thus proving I'm not insane and forgetting my password.
To add weight that this is a bug - my iPad (which is set up as intended) now prompts me for my password for the Gmail account - it has not done this before and has been running iOS5 since the 16th.
The settings match the ones on the iPhone 4 in the house which leaves me to think this is either related to my Gmail account (I don't see how as my Blackberry still lets me get access to my Gmail) or its either a 4s problem or iOS5 problem.
It didn't take long last night to find others having the same problem but I am yet to see any resolution of this and I actually lost sleep trying to think what else it could be.
Very frustrated as this works fine on the 4 in the house and was working on the iPad before initialising on the 4s.
Please help. Thanks in advance.
Sleepless in South Bucks

Same here - I have an iPad 1 and my work e-mail (MS exchange) is synced to it. Today I had to change the passsword (company policy, have to do it every month) which I did on my computer. After that the iPad asked for the new password. I entered it, but it did not accept it. The dialog comes back even if I hit cancel. There is NO WAY of getting rid of the password dialog. I practically can't use the iPad now as whatever I do, that password window comes up and it does not accept the password and will not accept 'Cancel' as an answer either. How do I get out of this vicious circle? I Closed mail and Calendar. But I can not go into system preferences to cancel iCloud, since that stupid dialog keeps me from using any apps. Any helpful tricks?

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