The missus had a stuck iPad that kept asking for her Exchange password (which worked fine in webmail).
Turns out this is a known bug and has a simple solution: Reset your iPad.
That solution works for both iPad, iPhone and iPod touch as lllaass answered:
Re: My Ipod touch is stuck in the password screen and I can’t turn it off or cancel. The screen that it is stuck at says :enter the password for the exchange account “exchange”
Dec 20, 2011 10:15 AM (in response to amy29)
Try resetting the iPod. Nothing will be lost.
Reset iPod touch: Hold down the On/Off button and the Home button at the same time for at least ten seconds, until the Apple logo appears
–jeroen
via: My Ipod touch is stuck in the password…: Apple Support Communities.
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