there is no known issue with the Treo 500v with the email password that I know of.
Anyway, is your password alpha-numeric? Maybe you forgot to press the option button to get the numbers when you saved it.
Here's another thing that you can try: unchecked the option for save password. Then enter the correct password without saving it. Try it for a couple of times. Then do another soft reset. Once you have rebooted your device, go to settings again, enter the password then at this time, check the option for save password.
If the problem still persist, then the last option I can suggest it that you perform a hard reset. Then re-configure the account.
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