diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/actions/SystemClearPasswordAction.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/actions/SystemClearPasswordAction.java
index 060b6342ed8..b007c34d74d 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/actions/SystemClearPasswordAction.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/actions/SystemClearPasswordAction.java
@@ -71,24 +71,10 @@ public class SystemClearPasswordAction extends SystemBaseAction
 		ISubSystem ss = (ISubSystem)getFirstSelection();
 		try {
 			IConnectorService system = ss.getConnectorService();
-			
-			// get the user id
-			String userId = system.getUserId();
-			
-			// clear userid/password from memory and fire event
-			//DKM and disk now
 			system.clearPasswordCache(true);
 			RSEUIPlugin.getTheSystemRegistry().fireEvent(new SystemResourceChangeEvent(ss, 
 					ISystemResourceChangeEvents.EVENT_PROPERTY_CHANGE, 
 					ss.getHost()));
-			
-			/* DKM - this is now done in clearPasswordCache
-			 * 
-			// now get rid of userid/password from disk
-			String systemType = ss.getSystem().getSystemType();
-			String hostName = system.getHostName();
-			PasswordPersistenceManager.getInstance().remove(systemType, hostName, userId);
-			*/
 		}
 		catch (Exception exc) {
 			// msg already shown
diff --git a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/dialogs/SystemPasswordPromptDialog.java b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/dialogs/SystemPasswordPromptDialog.java
index 384569732f4..c0a37810241 100644
--- a/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/dialogs/SystemPasswordPromptDialog.java
+++ b/rse/plugins/org.eclipse.rse.ui/UI/org/eclipse/rse/ui/dialogs/SystemPasswordPromptDialog.java
@@ -237,7 +237,6 @@ public final class SystemPasswordPromptDialog extends SystemPromptDialog impleme
 	protected Control getInitialFocusControl() {
 		okButton.setEnabled(true);
 		processUserIdField();
-		processPasswordField();
 		if (textUserId != null) {
 			if (userId.length() == 0 || textPassword == null) {
 				return textUserId;
@@ -311,14 +310,15 @@ public final class SystemPasswordPromptDialog extends SystemPromptDialog impleme
 	 * @see #setUserIdValidator(ISystemValidator)	
 	 */
 	private void processUserIdField() {
-		internalGetUserId();
-		internalGetPassword();
+		clearErrorMessage();
 		SystemMessage m = checkUserId();
 		if (m == null) {
 			m = checkPassword();
 		}
+		if (m != null) {
+			setErrorMessage(m);
+		}
 		okButton.setEnabled(m == null);
-		setErrorMessage(m);
 		if (userId == null || originalUserId == null) {
 			userIdChanged = (userId != originalUserId);
 		} else {
@@ -335,6 +335,7 @@ public final class SystemPasswordPromptDialog extends SystemPromptDialog impleme
 	 * @return the message returned by the validator or null.
 	 */
 	private SystemMessage checkUserId() {
+		internalGetUserId();
 		SystemMessage m = null;
 		if (connectorService.supportsUserId() && validate) {
 			if (userIdValidator != null) {
@@ -354,14 +355,15 @@ public final class SystemPasswordPromptDialog extends SystemPromptDialog impleme
 	 * @see #setPasswordValidator(ISystemValidator)	
 	 */
 	private void processPasswordField() {
-		internalGetUserId();
-		internalGetPassword();
+		clearErrorMessage();
 		SystemMessage m = checkPassword();
 		if (m == null) {
 			m = checkUserId();
 		}
+		if (m != null) {
+			setErrorMessage(m);
+		}
 		okButton.setEnabled(m == null);
-		setErrorMessage(m);
 		if (savePasswordCB != null) {
 			savePasswordCB.setEnabled(!(connectorService.requiresPassword() && password.length() == 0));
 		}
@@ -371,6 +373,7 @@ public final class SystemPasswordPromptDialog extends SystemPromptDialog impleme
 	 * Checks the value of the password instance variable.
 	 */
 	private SystemMessage checkPassword() {
+		internalGetPassword();
 		SystemMessage m = null;
 		if (connectorService.supportsPassword() && validate) {
 			if (passwordValidator != null) {
diff --git a/rse/plugins/org.eclipse.rse.ui/subsystems/org/eclipse/rse/core/subsystems/AbstractConnectorService.java b/rse/plugins/org.eclipse.rse.ui/subsystems/org/eclipse/rse/core/subsystems/AbstractConnectorService.java
index 3a95715ab4b..0de1cc8e686 100644
--- a/rse/plugins/org.eclipse.rse.ui/subsystems/org/eclipse/rse/core/subsystems/AbstractConnectorService.java
+++ b/rse/plugins/org.eclipse.rse.ui/subsystems/org/eclipse/rse/core/subsystems/AbstractConnectorService.java
@@ -338,22 +338,21 @@ public abstract class AbstractConnectorService extends RSEModelObject implements
 	 * change his userId.  
 	 * 
 	 * @param onDisk if this is true, clear the password from the disk cache as well
-	 * @see #clearUserIdCache(boolean)
+	 * @see #clearUserIdCache()
 	 */
 	final public void clearPasswordCache(boolean onDisk) {
 		setPasswordInformation(null);
-
+		String userId = getUserId();
 		if (onDisk) {
 			//  now get rid of userid/password from disk
 			String systemType = getHostType();
 			String hostName = getHostName();
-			if (_userId != null)
-				PasswordPersistenceManager.getInstance().remove(systemType, hostName, _userId);
+			if (userId != null)
+				PasswordPersistenceManager.getInstance().remove(systemType, hostName, userId);
 		}
-
 		if (shareUserPasswordWithConnection()) {
 			// clear this uid/password with other ISystems in connection
-			clearPasswordForOtherSystemsInConnection(_userId, onDisk);
+			clearPasswordForOtherSystemsInConnection(userId, onDisk);
 		}
 	}
 
@@ -533,6 +532,7 @@ public abstract class AbstractConnectorService extends RSEModelObject implements
 			    	  		logException(e);
 			    	  	}
 			    	  	if (dialog.wasCancelled()) {
+			    	  		_passwordInfo = null;
 			    	  		throw new InterruptedException();
 			    	  	}
 			    	  	String userId = dialog.getUserId();