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I had the same problem a few times.
Many times I went through the tedious task of re-entering the details, only for it to fail.
But upon detailed investigation, I found that the problem was that the HDS was not seeing a connection to WAN (internet). It was seeing a LAN connection locally, but nothing to the outside world. Rebooted the HDS and the router, made sure the ports were opened correctly, then it worked fine.
It seems that the "invalid password" message is displayed for what ever reason, if the HDS sees an ethernet connection, but NOT the internet. It would be more helpful if it displayer a message such as "unable to connect to authorisation server" (or something like this), under this condition.