I'm having the same problem with my daughters account.
We reset her password and get "Sorry, the password you provided does not match our records. If you have forgotten it, please reset your password."
You click the link an reset the password and sing in again....same message, the password you provided does not match our records...
Daljit: there's a log out / deauthorize button in the preferences screen you can use; after pressing it syncing should prompt you for your login details. I'll look into why it's not happening automatically when the password is changed.