Can't connect to exchange server with 6.0 on windows 8.1

I just installed on windows 8.1 and trying to connect to a exchange server. My account is on a domain. Server is https:\webmail.xxxx.com. I have given login user as domain\userID. It keeps coming with password failed and a dialog to reenter password. 
My password is correct. Even if I drop the domain from username, it still gives same error. I want to buy this product if this problem is fixed. Please help!

Log:
10:33:42 PM raghu.venkateshwaran@xxxcom [Exchange Web Services]  MailExceptions.ConnectionException: Couldn’t get server version.10:33:42 PM    at MailClient.Protocols.Exchange.ExchangeAccount.get_ExchangeService()
10:33:42 PM    at MailClient.Protocols.Exchange.ExchangeInboxWatcher.b__0(WorkerStatus s, CancellationToken c)
10:33:42 PM at MailClient.Protocols.Exchange.ExchangeGenericCommand.Execute(WorkerStatus status)
10:33:42 PM at MailClient.Commands.Command.Process(WorkerStatus status)
10:34:25 PM raghu.venkateshwaran@xxx.com [Exchange Web Services] Synchronizing folder list
10:34:25 PM raghu.venkateshwaran@txxx.com [Exchange Web Services] MailExceptions.ConnectionException: Couldn’t get server version.
10:34:25 PM at MailClient.Protocols.Exchange.ExchangeAccount.get_ExchangeService()
10:34:25 PM at MailClient.Protocols.Exchange.ExchangeFolderSynchronizer.GetFolderList(Folder homeFolder, CancellationToken cancellationToken)
10:34:25 PM at MailClient.Protocols.Common.FolderSynchronizer.<>c__DisplayClass5.b__0(WorkerStatus status, CancellationToken cancellationToken)
10:34:25 PM at MailClient.Protocols.Exchange.ExchangeGenericCommand.Execute(WorkerStatus status)
10:34:25 PM at MailClient.Commands.Command.Process(WorkerStatus status)

Using tip from another post with same problem I am able to connect by choosing Outlook instead of Exchange. However EM client has downloaded only the email folders and not a single email in any folder. All foders are created on client side with zero emails.

Please help.

Hello, unfortunately it’s not possible to synchronise your items over AirSync with the Exchange server, so setting up your account using outlook.com is not recommended. What version of Exchange are you currently using on your mail server?

What version of eM Client are you currently using on your computer, can you please check the exact release number in Help > About? Do you have the Exchange Web Services protocol enabled on your mail server to synchronise your account with eM Client?

Are you using any security software on your computer, that may have disabled the applications ability to connect to the server.

Hope this helps,