Still didnt work, it says "Contacting server"...
What I tried also, I tried activating the old device using SIM card A, the email from RIM gets to the users mailbox but device doesn't pick it up and that I am guessing is BDS doesn't support legacy devices. However, I inserted the same SIM A into a BB10 device and activated using the email profile (which points to our Mailbox server as you mentioned), and tried activating the device using the details and in the server field used SXXXXXX (Server Address) which is what it says as the server and all it does is "contacting server.." ending up with "The server couldnt be contacted. Check that you are connected to a network and that the server address is correct and try again"
I don't even receive any email in the mailbox this time so seems the device isn't even talking to RIM infrastructure and I am sure the username and activation password is correct.
I have checked one site for the error Iam getting and shows the following KB32811 Error messages while activating BlackBerry 10 devices