Update August 26th 2008: Dev Team has released the updated version 2.0.3.1 of PwnageTool which solves all the below issues. The remarks made in this post with respect to PwnageTool caused problems no longer apply.
(For a preliminary potential solution see below...)
Warning: I've received scattered reports that after upgrading to Apple firmware 2.0.2 with Dev Team's PwnageTool 2.0.3 a severe username and password issue arises in Mail.app and others. The symptoms:
- iPhone displays "Cannot Get Mail" error with "username or password is incorrect" even though you definitely entered the correct credentials. This seems to happen with IMAP and Exchange accounts.
- When setting up Exchange syncing Calendar and Contacts sync fine. Folders of the Exchange mailbox sync fine. However, when trying to send and receive email you are prompted to enter the password again. Upon providing correct credentials iPhone continues to say "username or password for account <account name> is incorrect".
- When using a password secured WiFi iPhone does not remember the password and constantly prompts for it.
- When going to your email account settings iPhone has "forgotten" a previously supplied password. Instead the settings show "Required" again.
- You cannot set Passcode Locks. Even when you enter a new Passcode twice the Passcode Lock stays off.
The issue seems to persist even after downgrading back to firmware 2.0.1.
I've contacted the Dev Team with this issue and update this post as soon as a solution is available. In the meantime if you're facing these or related issues, please comment to this post.
Update 1:
Visitor oz_paulb commented on the Dev Team blog that NOT including Cydia when you build your custom firmware seems to solve the issue. Use Expert mode to so. I haven't tried myself and can yet not confirm.
Potentially and preliminary solution:
Just "fixed" the issue on my iPhone. I cannot confirm that this will work as I don't have the initial issue anymore. May be other readers can try this and confirm in the comments:
1. Use Cydia to Install the Open SSH package.
2. SSH into your iPhone - Use your iPhone' WiFi IP address and login as user root, password alpine.
3. Once logged in type: chmod 777 /var/Keychains
4. Type: chmod -R 777 /private/var/Managed\ Preferences/
5. Step 3 will fix the ownership for the Keychains, that's where user credentials get stored in iPhone OS. Step 4 will fix the Passcode Lock issue.
6. So far this did NOT solve the problem on my iPhone.
7. Go to Settings > Fetch New Data.
8. Turn Push OFF.
9. Switch the fetch frequency to 15 Minutes.
10. Leave the Settings completely.
11. Try to get your email.
12. Go back to Settings > Fetch New Data.
13. Turn Push ON.
That's it. My Exchange email is back working. I just added an additional IMAP account and that works fine, too. Could somebody replicate?