diff --git a/lib/cloudfiles/core.js b/lib/cloudfiles/core.js
index 3fe3abe..4b7101a 100644
--- a/lib/cloudfiles/core.js
+++ b/lib/cloudfiles/core.js
@@ -64,6 +64,12 @@ Cloudfiles.prototype.setAuth = function (callback) {
       return callback(err); 
     }
 
+    var statusCode = res.statusCode.toString();
+    if (Object.keys(common.failCodes).indexOf(statusCode) !== -1) {
+      err = new Error('Rackspace Error (' + statusCode + '): ' + common.failCodes[statusCode]);
+      return callback(err, res);
+    }
+
     self.authorized = true;
     self.config.serverUrl = res.headers['x-server-management-url'];
     self.config.setStorageUrl(res.headers['x-storage-url']);
diff --git a/test/authentication-test.js b/test/authentication-test.js
index aa99a98..47c74bf 100644
--- a/test/authentication-test.js
+++ b/test/authentication-test.js
@@ -46,7 +46,8 @@ vows.describe('node-cloudfiles/authentication').addBatch({
         
         invalidClient.setAuth(this.callback);
       },
-      "should respond with 401": function (err, res) {
+      "should respond with 401 and return an error": function (err, res) {
+        assert.ok(err instanceof Error);
         assert.equal(res.statusCode, 401);
       }
     },