Password not recognized on iPhone; is on my Mac

After updating my iPhone 4 with iOS5, my password is not recognized by the App store or iTunes on the phone but is recognized by the same on my iMac. I have reset my password many times and it is accepted on this site and everywhere else that requires it, but not on my iPhone. I have even reset my settings which was nerve wracking as my iPhone initially wouldn't restart and then stalled after "requesting" that I sync with iTunes. It requested my password which it of course refused to recognize. I was able to finally decline entering the password and continue to restore my personal settings.

Anyone know how to get my password recognized by my iPhone again?