diff --git a/.classpath b/.classpath
index f7b8a1f99e..d57ec02513 100644
--- a/.classpath
+++ b/.classpath
@@ -4,6 +4,6 @@
 	<classpathentry exported="true" kind="con" path="com.android.ide.eclipse.adt.LIBRARIES"/>
 	<classpathentry kind="src" path="src"/>
 	<classpathentry kind="src" path="gen"/>
-	<classpathentry kind="con" path="com.android.ide.eclipse.adt.DEPENDENCIES"/>
+	<classpathentry exported="true" kind="con" path="com.android.ide.eclipse.adt.DEPENDENCIES"/>
 	<classpathentry kind="output" path="bin/classes"/>
 </classpath>
diff --git a/res/drawable/ic_hide.png b/res/drawable/ic_hide.png
new file mode 100644
index 0000000000..8a8144b5b8
Binary files /dev/null and b/res/drawable/ic_hide.png differ
diff --git a/res/drawable/ic_view.png b/res/drawable/ic_view.png
new file mode 100644
index 0000000000..b57c249985
Binary files /dev/null and b/res/drawable/ic_view.png differ
diff --git a/res/layout-land/account_setup.xml b/res/layout-land/account_setup.xml
index b8b8b5344e..dea86cd9f8 100644
--- a/res/layout-land/account_setup.xml
+++ b/res/layout-land/account_setup.xml
@@ -122,28 +122,16 @@
 					android:hint="@string/auth_username"
 					android:inputType="textNoSuggestions" />
 		
-				<FrameLayout
+				<EditText
+				    android:id="@+id/account_password"
 					android:layout_width="match_parent"
 					android:layout_height="wrap_content"
-					>
-					<EditText
-						android:id="@+id/account_password"
-						android:layout_width="match_parent"
-						android:layout_height="wrap_content"
-						android:ems="10"
-						android:hint="@string/auth_password"
-						android:inputType="textPassword"/>
-					
-					<ImageView
-						android:id="@+id/viewPasswordButton"
-						android:layout_width="wrap_content"
-						android:layout_height="wrap_content"
-						android:layout_gravity="right|center_vertical"
-						android:src="@android:drawable/ic_menu_view"
-						android:onClick="onViewPasswordClick"
-						android:visibility="invisible" />
-				</FrameLayout>
-		     
+					android:ems="10"
+					android:hint="@string/auth_password"
+					android:inputType="textPassword"
+					android:drawablePadding="5dp"
+					/>
+		        
 				<TextView
 					android:id="@+id/auth_status_text"
 					android:layout_width="match_parent"
diff --git a/res/layout/account_setup.xml b/res/layout/account_setup.xml
index 45efab1687..a218fa972b 100644
--- a/res/layout/account_setup.xml
+++ b/res/layout/account_setup.xml
@@ -101,28 +101,15 @@
             android:hint="@string/auth_username"
             android:inputType="textNoSuggestions" />
 
-        <FrameLayout
-            android:layout_width="match_parent"
-            android:layout_height="wrap_content" >
-
-            <EditText
-                android:id="@+id/account_password"
-                android:layout_width="match_parent"
-                android:layout_height="wrap_content"
-                android:ems="10"
-                android:hint="@string/auth_password"
-                android:inputType="textPassword" />
-
-            <ImageView
-                android:id="@+id/viewPasswordButton"
-                android:layout_width="wrap_content"
-                android:layout_height="wrap_content"
-                android:layout_gravity="right|center_vertical"
-                android:onClick="onViewPasswordClick"
-                android:src="@android:drawable/ic_menu_view"
-                android:visibility="invisible" />
-        </FrameLayout>
-
+		<EditText
+		    android:id="@+id/account_password"
+		    android:layout_width="match_parent"
+		    android:layout_height="wrap_content"
+		    android:drawablePadding="5dp"
+		    android:ems="10"
+		    android:hint="@string/auth_password"
+		    android:inputType="textPassword" />
+        
         <TextView
             android:id="@+id/auth_status_text"
             android:layout_width="match_parent"
diff --git a/src/com/owncloud/android/authentication/AuthenticatorActivity.java b/src/com/owncloud/android/authentication/AuthenticatorActivity.java
index 13ffd2a9e5..b4b1c6b6f3 100644
--- a/src/com/owncloud/android/authentication/AuthenticatorActivity.java
+++ b/src/com/owncloud/android/authentication/AuthenticatorActivity.java
@@ -61,7 +61,6 @@ import android.view.inputmethod.EditorInfo;
 import android.widget.CheckBox;
 import android.widget.EditText;
 import android.widget.Button;
-import android.widget.ImageView;
 import android.widget.TextView;
 import android.widget.Toast;
 import android.widget.TextView.OnEditorActionListener;
@@ -95,8 +94,10 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
     private static final String KEY_SERVER_STATUS_TEXT = "SERVER_STATUS_TEXT";
     private static final String KEY_SERVER_STATUS_ICON = "SERVER_STATUS_ICON";
     private static final String KEY_IS_SSL_CONN = "IS_SSL_CONN";
+    private static final String KEY_PASSWORD_VISIBLE = "PASSWORD_VISIBLE";
     private static final String KEY_AUTH_STATUS_TEXT = "AUTH_STATUS_TEXT";
     private static final String KEY_AUTH_STATUS_ICON = "AUTH_STATUS_ICON";
+    private static final String KEY_REFRESH_BUTTON_ENABLED = "KEY_REFRESH_BUTTON_ENABLED";
 
     private static final String OAUTH_MODE_ON = "on";
     private static final String OAUTH_MODE_OFF = "off";
@@ -131,7 +132,6 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
     private byte mAction;
     private Account mAccount;
 
-    private ImageView mViewPasswordButton;
     private EditText mHostUrlInput;
     private EditText mUsernameInput;
     private EditText mPasswordInput;
@@ -142,6 +142,8 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
 
     private TextView mOAuthAuthEndpointText;
     private TextView mOAuthTokenEndpointText;
+    
+    private boolean mRefreshButtonEnabled;
 
 
     /**
@@ -156,7 +158,6 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
 
         /// set view and get references to view elements
         setContentView(R.layout.account_setup);
-        mViewPasswordButton = (ImageView) findViewById(R.id.viewPasswordButton);
         mHostUrlInput = (EditText) findViewById(R.id.hostUrlInput);
         mUsernameInput = (EditText) findViewById(R.id.account_username);
         mPasswordInput = (EditText) findViewById(R.id.account_password);
@@ -216,7 +217,10 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
             mIsSslConn = savedInstanceState.getBoolean(KEY_IS_SSL_CONN);
             mAuthStatusText = savedInstanceState.getInt(KEY_AUTH_STATUS_TEXT);
             mAuthStatusIcon = savedInstanceState.getInt(KEY_AUTH_STATUS_ICON);
-
+            if (savedInstanceState.getBoolean(KEY_PASSWORD_VISIBLE, false)) {
+                showPassword();
+            }
+            
             /// server data
             String ocVersion = savedInstanceState.getString(KEY_OC_VERSION);
             if (ocVersion != null) {
@@ -230,13 +234,16 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
             // check if server check was interrupted by a configuration change
             if (savedInstanceState.getBoolean(KEY_SERVER_CHECK_IN_PROGRESS, false)) {
                 checkOcServer();
-            }
+            }            
+            
+            // refresh button enabled
+            mRefreshButtonEnabled = savedInstanceState.getBoolean(KEY_REFRESH_BUTTON_ENABLED);
 
         }
 
         showServerStatus();
         showAuthStatus();
-        if (mServerIsChecked && !mServerIsValid) showRefreshButton();
+        if (mServerIsChecked && !mServerIsValid && mRefreshButtonEnabled) showRefreshButton();
         mOkButton.setEnabled(mServerIsValid); // state not automatically recovered in configuration changes
 
         if (!OAUTH_MODE_OPTIONAL.equals(getString(R.string.oauth2_mode))) {
@@ -261,7 +268,9 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
         mHostUrlInput.setOnTouchListener(new RightDrawableOnTouchListener() {
             @Override
             public boolean onDrawableTouch(final MotionEvent event) {
-                AuthenticatorActivity.this.onRefreshClick(mHostUrlInput);
+                if (event.getAction() == MotionEvent.ACTION_UP) {
+                    AuthenticatorActivity.this.onRefreshClick();
+                }
                 return true;
             }
         });
@@ -283,7 +292,16 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
         });
         mPasswordInput.setOnFocusChangeListener(this);
         mPasswordInput.setImeOptions(EditorInfo.IME_ACTION_DONE);
-        mPasswordInput.setOnEditorActionListener(this);
+        mPasswordInput.setOnEditorActionListener(this);
+        mPasswordInput.setOnTouchListener(new RightDrawableOnTouchListener() {
+            @Override
+            public boolean onDrawableTouch(final MotionEvent event) {
+                if (event.getAction() == MotionEvent.ACTION_UP) {
+                    AuthenticatorActivity.this.onViewPasswordClick();
+                }
+                return true;
+            }
+        });
     }
 
     /**
@@ -305,6 +323,7 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
         outState.putBoolean(KEY_SERVER_CHECKED, mServerIsChecked);
         outState.putBoolean(KEY_SERVER_CHECK_IN_PROGRESS, (!mServerIsValid && mOcServerChkOperation != null));
         outState.putBoolean(KEY_IS_SSL_CONN, mIsSslConn);
+        outState.putBoolean(KEY_PASSWORD_VISIBLE, isPasswordVisible());
         outState.putInt(KEY_AUTH_STATUS_ICON, mAuthStatusIcon);
         outState.putInt(KEY_AUTH_STATUS_TEXT, mAuthStatusText);
 
@@ -318,6 +337,9 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
         if (mAccount != null) {
             outState.putParcelable(KEY_ACCOUNT, mAccount);
         }
+        
+        // refresh button enabled
+        outState.putBoolean(KEY_REFRESH_BUTTON_ENABLED, mRefreshButtonEnabled);
 
     }
 
@@ -394,6 +416,9 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
         if (view.getId() == R.id.hostUrlInput) {   
             if (!hasFocus) {
                 onUrlInputFocusLost((TextView) view);
+                if (!mServerIsValid) {
+                    showRefreshButton();
+                }
             }
             else {
                 hideRefreshButton();
@@ -459,16 +484,43 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
      */
     private void onPasswordFocusChanged(TextView passwordInput, boolean hasFocus) {
         if (hasFocus) {
-            mViewPasswordButton.setVisibility(View.VISIBLE);
+            showViewPasswordButton();
         } else {
-            int input_type = InputType.TYPE_CLASS_TEXT | InputType.TYPE_TEXT_VARIATION_PASSWORD;
-            passwordInput.setInputType(input_type);
-            mViewPasswordButton.setVisibility(View.INVISIBLE);
+            hidePassword();
+            hidePasswordButton();
         }
     }
 
 
+    private void showViewPasswordButton() {
+        //int drawable = android.R.drawable.ic_menu_view;
+        int drawable = R.drawable.ic_view;
+        if (isPasswordVisible()) {
+            //drawable = android.R.drawable.ic_secure;
+            drawable = R.drawable.ic_hide;
+        }
+        mPasswordInput.setCompoundDrawablesWithIntrinsicBounds(0, 0, drawable, 0);
+    }
 
+    private boolean isPasswordVisible() {
+        return ((mPasswordInput.getInputType() & InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD) == InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD);
+    }
+    
+    private void hidePasswordButton() {
+        mPasswordInput.setCompoundDrawablesWithIntrinsicBounds(0, 0, 0, 0);
+    }
+
+    private void showPassword() {
+        mPasswordInput.setInputType(InputType.TYPE_CLASS_TEXT | InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD);
+        showViewPasswordButton();
+    }
+    
+    private void hidePassword() {
+        mPasswordInput.setInputType(InputType.TYPE_CLASS_TEXT | InputType.TYPE_TEXT_VARIATION_PASSWORD);
+        showViewPasswordButton();
+    }
+    
+    
     /**
      * Cancels the authenticator activity
      * 
@@ -1100,10 +1152,12 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
 
     private void showRefreshButton() {
         mHostUrlInput.setCompoundDrawablesWithIntrinsicBounds(0, 0, R.drawable.ic_action_refresh_black, 0);
+        mRefreshButtonEnabled = true;
     }
 
     private void hideRefreshButton() {
         mHostUrlInput.setCompoundDrawablesWithIntrinsicBounds(0, 0, 0, 0);
+        mRefreshButtonEnabled = false;
     }
 
     /**
@@ -1113,30 +1167,24 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
      * 
      * @param view      Refresh 'button'
      */
-    public void onRefreshClick(View view) {
+    public void onRefreshClick() {
         checkOcServer();
     }
-
-
+    
+    
     /**
      * Called when the eye icon in the password field is clicked.
      * 
      * Toggles the visibility of the password in the field. 
-     * 
-     * @param view      'View password' 'button'
      */
-    public void onViewPasswordClick(View view) {
+    public void onViewPasswordClick() {
         int selectionStart = mPasswordInput.getSelectionStart();
         int selectionEnd = mPasswordInput.getSelectionEnd();
-        int input_type = mPasswordInput.getInputType();
-        if ((input_type & InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD) == InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD) {
-            input_type = InputType.TYPE_CLASS_TEXT
-                    | InputType.TYPE_TEXT_VARIATION_PASSWORD;
+        if (isPasswordVisible()) {
+            hidePassword();
         } else {
-            input_type = InputType.TYPE_CLASS_TEXT
-                    | InputType.TYPE_TEXT_VARIATION_VISIBLE_PASSWORD;
+            showPassword();
         }
-        mPasswordInput.setInputType(input_type);
         mPasswordInput.setSelection(selectionStart, selectionEnd);
     }    
 
@@ -1167,13 +1215,11 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
             mOAuthTokenEndpointText.setVisibility(View.VISIBLE);
             mUsernameInput.setVisibility(View.GONE);
             mPasswordInput.setVisibility(View.GONE);
-            mViewPasswordButton.setVisibility(View.GONE);
         } else {
             mOAuthAuthEndpointText.setVisibility(View.GONE);
             mOAuthTokenEndpointText.setVisibility(View.GONE);
             mUsernameInput.setVisibility(View.VISIBLE);
             mPasswordInput.setVisibility(View.VISIBLE);
-            mViewPasswordButton.setVisibility(View.INVISIBLE);
         }     
 
     }    
@@ -1214,30 +1260,28 @@ implements  OnRemoteOperationListener, OnSslValidatorListener, OnFocusChangeList
 
     private abstract static class RightDrawableOnTouchListener implements OnTouchListener  {
 
-        private int fuzz = 10;
-
+        private int fuzz = 75;
+        
         /**
          * {@inheritDoc}
          */
         @Override
         public boolean onTouch(View view, MotionEvent event) {
-            if (event.getAction() == MotionEvent.ACTION_DOWN) {
-                Drawable rightDrawable = null;
-                if (view instanceof TextView) {
-                    Drawable[] drawables = ((TextView)view).getCompoundDrawables();
-                    if (drawables.length > 2) {
-                        rightDrawable = drawables[2];
-                    }
+            Drawable rightDrawable = null;
+            if (view instanceof TextView) {
+                Drawable[] drawables = ((TextView)view).getCompoundDrawables();
+                if (drawables.length > 2) {
+                    rightDrawable = drawables[2];
                 }
-                if (rightDrawable != null) {
-                    final int x = (int) event.getX();
-                    final int y = (int) event.getY();
-                    final Rect bounds = rightDrawable.getBounds();
-                    if (x >= (view.getRight() - bounds.width() - fuzz) && x <= (view.getRight() - view.getPaddingRight() + fuzz)
-                            && y >= (view.getPaddingTop() - fuzz) && y <= (view.getHeight() - view.getPaddingBottom()) + fuzz) {
-
-                        return onDrawableTouch(event);
-                    }
+            }
+            if (rightDrawable != null) {
+                final int x = (int) event.getX();
+                final int y = (int) event.getY();
+                final Rect bounds = rightDrawable.getBounds();
+                if (x >= (view.getRight() - bounds.width() - fuzz) && x <= (view.getRight() - view.getPaddingRight() + fuzz)
+                    && y >= (view.getPaddingTop() - fuzz) && y <= (view.getHeight() - view.getPaddingBottom()) + fuzz) {
+                    
+                    return onDrawableTouch(event);
                 }
             }
             return false;
diff --git a/tests/.classpath b/tests/.classpath
index 0331c0e210..5940126091 100644
--- a/tests/.classpath
+++ b/tests/.classpath
@@ -2,8 +2,8 @@
 <classpath>
 	<classpathentry combineaccessrules="false" kind="src" path="/owncloud-android"/>
 	<classpathentry kind="con" path="com.android.ide.eclipse.adt.ANDROID_FRAMEWORK"/>
-	<classpathentry kind="con" path="com.android.ide.eclipse.adt.LIBRARIES"/>
-	<classpathentry kind="con" path="org.eclipse.jdt.junit.JUNIT_CONTAINER/4"/>
+	<classpathentry exported="true" kind="con" path="com.android.ide.eclipse.adt.LIBRARIES"/>
+	<classpathentry exported="true" kind="con" path="org.eclipse.jdt.junit.JUNIT_CONTAINER/4"/>
 	<classpathentry kind="src" path="src"/>
 	<classpathentry kind="src" path="gen"/>
 	<classpathentry exported="true" kind="con" path="com.android.ide.eclipse.adt.DEPENDENCIES"/>