Q: I DO NOT know my Local Items Keychain password.

Do you have a backup from before you updated to Mavericks?  It would be in your ~/Library/Keychains folder.

Open up Finder, clicking Go on the menu bar then selecting Go To Folder. Type in ~/Library/Keychains and go to that folder. Delete the folder that is a series of alphanumeric characters such as 1A3B5C-6D8F-A1CD-3456. Then restart computer tot test.

Thank  you - deleting the folder worked for me!

I am having the exact same issue, but when I go the the Library/Keychains folder I only have the following folders:

applepushserviced.keychain, apsd.keychain, and two "system" keychains.  Do you have any suggestions?  I am afraid to delete something I shouldn't.

NEVERMIND!  I was looking in the wrong library, since the user library wouldn't show up - I looked up how to view my Home Library.  This was exactly the fix I needed.

Thanks for the post and the help!

Thanks, finally I can work with my computer again.

Deleting the wierd folder in ~/Library/Keychains worked for me, too.  Thanks so much Tlix!

Thanks guys. This sorted it for me too :-)

Fantastic this has been really annoying me THANK YOU!

Thanks Tlix!! You're a hero in my eyes!!!!

What if it won't let me delete the folder because it's currently in use? Can you help me with that? Thanks!

Nevermind! I figured it out!! Thank you very much.

This worked like a charm for both my wife and me.  Thanks!

Hi - I can't even login in at all - any ideas??

I got the errors late last night and decided to shut down and look again this morning but now its coming up with OSX wants the local keychain popup at the login screen and is stuck!