I\'ve started using Bootstrap in order to achieve a nice page design without resorting to GWT (the backend is made in java)
For my login screen I copied this example
Generally showing the error near where the error occurs is best. i.e. if someone has an error with entering their email, you highlight the email input box.
This article has a couple good examples. http://uxdesign.smashingmagazine.com/2011/05/27/getting-started-with-defensive-web-design/
Also twitter bootstrap has some nice styling that helps with that (scroll down to the Validation states section) http://twitter.github.com/bootstrap/base-css.html#forms
Highlighting each input box is a bit more complicated, so the easy way would be to just put an bootstrap alert at the top with details of what the user did wrong. http://twitter.github.com/bootstrap/components.html#alerts