MobileMe Control Panel rejects password that works on iCloud.com

For some reason this morning my mail stopped working (using Entourage 2008). I verified the password works by signing into iCloud.com.

I'm using 10.6.8 so I checked the MobileMe control panel and it says password invalid as well. I tried signing out and back in - same response about bad password.

The message I get from Entourage is:

5.7.8 Bad Username or password (authentication failed)

Is there a problem with the mail servers not being synced to icloud? I didn't change the password and my email on iphone is working.