Authentication methods are not supported by server - bug in Android 3.2 email client

I recently picked up an Asus Eee Pad Transformer which I am having some fun with.  I was stuck last night, however, on an annoying Honeycomb glitch which prevented me from setting up my email.  After entering the outgoing settings, the setup would refuse to finish, giving the error message described above.  The solution is simple: before unticking the checkbox about requiring authentication, you need to clear the username and password fields that have been automatically filled in for you.  THEN untick the checkbox and continue.  That's it!