I use several MobileMe accounts for work. One primary for all shop-related correspondence. One personal. Today, we upgraded our shop account to iCloud. Three computers (2007 iMac, 2010 MacBook, 2012 iMac) share this account. The upgrade was flawless: Quick, easy, and works on all three computers and three different OS's.
Then came my personal account. Went through exactly the same steps.
1. Upgraded to iCloud online.
2. Used Lion computer to created email account.
3. Went back to Snow Leopard laptop to double check email.....only to get the "re-enter password notice".
Checked online. Found this thread. Tried literally every fix. Changed password (to new, hard to remember iCloud-compatible password). Deleted and reset accounts. The works.
Then, in a fit of frustration, after hours of trying various fixes, I tried logging in with all my ORIGINAL information, using the original password that I had just replaced 90 minutes prior. Lo and behold, my mail worked again!
I kept getting "incorrect password in your MobileMe settings" notices, so I figured I should change it back to the old one, just like the Mail. No go. I was told the password was incorrect. I was told the SAME thing when trying to log in with the new password. Mail fix: 1. Other MobileMe functions: 0. So I sacrificed calendar syncing for email functionality. All in all, a decent trade.
Went to log in to this discussion to share my solution, and got a notice from Apple that the password is locked for security reasons! Good grief! I did have another Apple ID I could use. But I ain't touchin' nothin'. My Mail works, and that's all I need to know.....