diff --git a/core/includes/form.inc b/core/includes/form.inc
index 513615c..df13fba 100644
--- a/core/includes/form.inc
+++ b/core/includes/form.inc
@@ -964,6 +964,52 @@ function drupal_process_form($form_id, &$form, &$form_state) {
 }
 
 /**
+ * Displays the given form's errors and links each error to the form element
+ * in question.
+ *
+ * @param array $form
+ *   An associative array containing the structure of the form.
+ */
+function form_display_errors(array $form) {
+  if ($errors = form_get_errors()) {
+    $error_links = array();
+    foreach ($errors as $key => $error) {
+      $element = form_get_element($key, $form);
+      if ($element) {
+        $title = form_element_get_title($element);
+        $error_links[] = l($title, '', array('fragment' => 'edit-' . str_replace('_', '-', $key), 'external' => TRUE));
+      }
+      else {
+        drupal_set_message($error, 'error');
+        unset($errors[$key]);
+      }
+    }
+
+    if (!empty($error_links)) {
+      drupal_set_message(format_plural(count($error_links), '1 error has been found', '@count errors have been found') . ': ' . implode(', ', $error_links), 'error');
+    }
+  }
+}
+
+/**
+ * Returns the title the highest element in the hierarchy that has a title. If
+ * no title is found, then NULL is returned.
+ */
+function form_element_get_title(array $element) {
+  if (isset($element['#title'])) {
+    return $element['#title'];
+  }
+  else {
+    foreach (element_children($element) as $key) {
+      $title = form_element_get_title($element[$key]);
+      if (isset($title)) {
+        return $title;
+      }
+    }
+  }
+}
+
+/**
  * Prepares a structured form array.
  *
  * Adds required elements, executes any hook_form_alter functions, and
@@ -1193,6 +1239,10 @@ function drupal_validate_form($form_id, &$form, &$form_state) {
     }
     $form_state['values'] = $values;
   }
+
+  if (!$form_state['programmed']) {
+    form_display_errors($form);
+  }
 }
 
 /**
@@ -1634,9 +1684,6 @@ function form_set_error($name = NULL, $message = '', $limit_validation_errors =
     }
     if ($record) {
       $form[$name] = $message;
-      if ($message) {
-        drupal_set_message($message, 'error');
-      }
     }
   }
 
@@ -1792,6 +1839,7 @@ function form_builder($form_id, &$element, &$form_state) {
     '#required' => FALSE,
     '#attributes' => array(),
     '#title_display' => 'before',
+    '#error_use_parent' => FALSE,
   );
 
   // Special handling if we're on the top level form element.
@@ -1965,6 +2013,38 @@ function form_builder($form_id, &$element, &$form_state) {
 }
 
 /**
+ * Given a form and an element key, this function returns the element no matter
+ * how deep within the form array the key exists. If the key is not found an
+ * empty array is returned.
+ *
+ * @param string $element_key
+ *   The key to search for.
+ *
+ * @param array $form
+ *   A structured form array to search.
+ *
+ * @return array
+ */
+function form_get_element($element_key, $form) {
+  $element = array();
+  foreach (element_children($form) as $key) {
+    if ($key === $element_key) {
+      $element = $form[$key];
+      break;
+    }
+    else {
+      if (is_array($form[$key])) {
+        $element = form_get_element($element_key, $form[$key]);
+        if (!empty($element)) {
+          break;
+        }
+      }
+    }
+  }
+  return $element;
+}
+
+/**
  * Adds the #name and #value properties of an input element before rendering.
  */
 function _form_builder_handle_input_element($form_id, &$element, &$form_state) {
@@ -2962,6 +3042,7 @@ function form_process_password_confirm($element) {
     '#value' => empty($element['#value']) ? NULL : $element['#value']['pass1'],
     '#required' => $element['#required'],
     '#attributes' => array('class' => array('password-field')),
+    '#error_use_parent' => TRUE,
   );
   $element['pass2'] =  array(
     '#type' => 'password',
@@ -2969,6 +3050,7 @@ function form_process_password_confirm($element) {
     '#value' => empty($element['#value']) ? NULL : $element['#value']['pass2'],
     '#required' => $element['#required'],
     '#attributes' => array('class' => array('password-confirm')),
+    '#error_use_parent' => TRUE,
   );
   $element['#element_validate'] = array('password_confirm_validate');
   $element['#tree'] = TRUE;
@@ -3161,6 +3243,8 @@ function form_process_radios($element) {
         '#parents' => $element['#parents'],
         '#id' => drupal_html_id('edit-' . implode('-', $parents_for_id)),
         '#ajax' => isset($element['#ajax']) ? $element['#ajax'] : NULL,
+        // Errors should only be shown on the parent radios element.
+        '#error_use_parent' => TRUE,
         '#weight' => $weight,
       );
     }
@@ -3312,6 +3396,8 @@ function form_process_checkboxes($element) {
         '#default_value' => isset($value[$key]) ? $key : NULL,
         '#attributes' => $element['#attributes'],
         '#ajax' => isset($element['#ajax']) ? $element['#ajax'] : NULL,
+        // Errors should only be shown on the parent checkboxes element.
+        '#error_use_parent' => TRUE,
         '#weight' => $weight,
       );
     }
@@ -4675,6 +4761,8 @@ function theme_form_element($variables) {
     '#title_display' => 'before',
   );
 
+  $variables['errors'] = form_get_error($element);
+
   // Take over any #wrapper_attributes defined by the element.
   // @todo Temporary hack for #type 'item'.
   // @see http://drupal.org/node/1829202
@@ -4697,8 +4785,17 @@ function theme_form_element($variables) {
   if (!empty($element['#attributes']['disabled'])) {
     $attributes['class'][] = 'form-disabled';
   }
+  // Add a class if an error exists.
+  if (!empty($variables['errors'])) {
+    $attributes['class'][] = 'form-error';
+  }
   $output = '<div' . new Attribute($attributes) . '>' . "\n";
 
+  // Display any error messages.
+  if ($variables['errors'] && !$element['#error_use_parent']) {
+    $output .= ' ' . theme('form_error_message', $variables);
+  }
+
   // If #title is not set, we don't display any label or required marker.
   if (!isset($element['#title'])) {
     $element['#title_display'] = 'none';
@@ -4813,6 +4910,25 @@ function theme_form_element_label($variables) {
 }
 
 /**
+ * Returns HTML for an inline error associated with a specific form element.
+ *
+ * @param $variables
+ *   An associative array containing:
+ *   - element: An associative array containing the properties of the element.
+ *     Properties used: error.
+ *   - errors: The errors associated with the current element as returned by
+ *     form_get_error($element).
+ *
+ * @ingroup themeable
+ */
+function theme_form_error_message($variables) {
+  $output = '<div class="form-error-message">';
+  $output .= '<strong>' . t('Error') . ': ' . $variables['errors'] . '</strong>';
+  $output .= '</div>';
+  return $output;
+}
+
+/**
  * Sets a form element's class attribute.
  *
  * Adds 'required' and 'error' classes as needed.
diff --git a/core/includes/theme.inc b/core/includes/theme.inc
index bab2af5..effa904 100644
--- a/core/includes/theme.inc
+++ b/core/includes/theme.inc
@@ -3307,6 +3307,9 @@ function drupal_common_theme() {
     'form_element_label' => array(
       'render element' => 'element',
     ),
+    'form_error_message' => array(
+      'render element' => 'element',
+    ),
     'vertical_tabs' => array(
       'render element' => 'element',
     ),
diff --git a/core/modules/system/system.theme.css b/core/modules/system/system.theme.css
index dd36ce3..5620d1b 100644
--- a/core/modules/system/system.theme.css
+++ b/core/modules/system/system.theme.css
@@ -80,6 +80,16 @@ td.active {
 /**
  * Markup generated by Form API.
  */
+div.form-error {
+  background-color: #fef5f1;
+  border: 1px solid #ed541d;
+  color: #8c2e0b;
+  padding: 10px;
+}
+div.form-error-message {
+  margin-bottom: 10px;
+  min-height: 25px;
+}
 .form-item,
 .form-actions {
   margin-top: 1em;