diff --git libcloud/common/rackspace.py libcloud/common/rackspace.py
index 953a961..908c73e 100644
--- libcloud/common/rackspace.py
+++ libcloud/common/rackspace.py
@@ -19,7 +19,7 @@ Common utilities for Rackspace Cloud Servers and Cloud Files
 import httplib
 from urllib2 import urlparse
 from libcloud.common.base import ConnectionUserAndKey
-from libcloud.compute.types import InvalidCredsError
+from libcloud.compute.types import InvalidCredsError, MalformedResponseError
 
 AUTH_HOST_US='auth.api.rackspacecloud.com'
 AUTH_HOST_UK='lon.auth.api.rackspacecloud.com'
@@ -95,20 +95,32 @@ class RackspaceBaseConnection(ConnectionUserAndKey):
 
             resp = conn.getresponse()
 
-            if resp.status != httplib.NO_CONTENT:
-                raise InvalidCredsError()
+            # HTTP NO CONTENT (204): auth successful
+            if resp.status == httplib.NO_CONTENT:
+                headers = dict(resp.getheaders())
+
+                try:
+                    self.server_url = headers['x-server-management-url']
+                    self.storage_url = headers['x-storage-url']
+                    self.cdn_management_url = headers['x-cdn-management-url']
+                    self.lb_url = self.server_url.replace("servers", "ord.loadbalancers")
+                    self.auth_token = headers['x-auth-token']
 
-            headers = dict(resp.getheaders())
+                # Returned 204 but has missing information in the header, something is wrong
+                except KeyError, e:
+                    raise MalformedResponseError('Malformed response',
+                            body='Missing header: %s' % e, driver=self.driver)
 
-            try:
-                self.server_url = headers['x-server-management-url']
-                self.storage_url = headers['x-storage-url']
-                self.cdn_management_url = headers['x-cdn-management-url']
-                self.lb_url = self.server_url.replace("servers", "ord.loadbalancers")
-                self.auth_token = headers['x-auth-token']
-            except KeyError:
+            # HTTP UNAUTHORIZED (401): auth failed
+            elif resp.status == httplib.UNAUTHORIZED:
                 raise InvalidCredsError()
 
+            # Any response code != 401 or 204, something is wrong
+            else:
+                raise MalformedResponseError('Malformed response',
+                        body='code: %s body:%s' % (resp.status, ''.join(resp.body.readlines())),
+                        driver=self.driver)
+
             for key in ['server_url', 'storage_url', 'cdn_management_url',
                         'lb_url']:
                 scheme, server, request_path, param, query, fragment = (
diff --git test/compute/test_rackspace.py test/compute/test_rackspace.py
index b46f3dd..dbe92ee 100644
--- test/compute/test_rackspace.py
+++ test/compute/test_rackspace.py
@@ -16,7 +16,7 @@ import sys
 import unittest
 import httplib
 
-from libcloud.common.types import InvalidCredsError
+from libcloud.common.types import InvalidCredsError, MalformedResponseError
 from libcloud.compute.drivers.rackspace import RackspaceNodeDriver as Rackspace
 from libcloud.compute.base import Node, NodeImage, NodeSize
 
@@ -46,8 +46,17 @@ class RackspaceTests(unittest.TestCase, TestCaseMixin):
         RackspaceMockHttp.type = 'UNAUTHORIZED_MISSING_KEY'
         try:
             self.driver = Rackspace(RACKSPACE_USER, RACKSPACE_KEY)
-        except InvalidCredsError, e:
-            self.assertEqual(True, isinstance(e, InvalidCredsError))
+        except MalformedResponseError, e:
+            self.assertEqual(True, isinstance(e, MalformedResponseError))
+        else:
+            self.fail('test should have thrown')
+
+    def test_auth_server_error(self):
+        RackspaceMockHttp.type = 'INTERNAL_SERVER_ERROR'
+        try:
+            self.driver = Rackspace(RACKSPACE_USER, RACKSPACE_KEY)
+        except MalformedResponseError, e:
+            self.assertEqual(True, isinstance(e, MalformedResponseError))
         else:
             self.fail('test should have thrown')
 
@@ -197,6 +206,9 @@ class RackspaceMockHttp(MockHttp):
     def _v1_0_UNAUTHORIZED(self, method, url, body, headers):
         return  (httplib.UNAUTHORIZED, "", {}, httplib.responses[httplib.UNAUTHORIZED])
 
+    def _v1_0_INTERNAL_SERVER_ERROR(self, method, url, body, headers):
+        return (httplib.INTERNAL_SERVER_ERROR, "<h1>500: Internal Server Error</h1>", {}, httplib.responses[httplib.INTERNAL_SERVER_ERROR])
+
     def _v1_0_UNAUTHORIZED_MISSING_KEY(self, method, url, body, headers):
         headers = {'x-server-management-url': 'https://servers.api.rackspacecloud.com/v1.0/slug',
                    'x-auth-token': 'FE011C19-CF86-4F87-BE5D-9229145D7A06',
@@ -277,7 +289,5 @@ class RackspaceMockHttp(MockHttp):
     def _v1_0_slug_servers_3445_ips_public_67_23_21_133(self, method, url, body, headers):
         return (httplib.ACCEPTED, "", {}, httplib.responses[httplib.ACCEPTED])
 
-
-
 if __name__ == '__main__':
     sys.exit(unittest.main())