try putting these in your layout:
<%= content_tag(:div, flash[:error], :id => "flash_error") if flash[:error] %>
<%= content_tag(:div, flash[:notice], :id => "flash_notice") if flash[:notice] %>
<%= content_tag(:div, flash[:alert], :id => "flash_alert") if flash[:alert] %>
Login action in Devise sets flash messages, not model Errors.