[richwm]

Unfortunately the same thing happened to me. When I searched online I saw that there was someone who got an evo from the google i/o with the same problem. They thought that it was secondary to an exchange server issue. I called sprint and they had not heard of any such issues. I simply reset the phone (hold power button and down volume) and cleared data. I hope that this is not a recurring theme!

Update: I have heard that touchdown will bypass this issue but another (free) way to bypass this error is to download lockpicker off of the android market. This prevent you from having to put in a password and my evo has been working since I had to reset it and downloaded lockpicker (about 8hrs ago).