I got it working finally - turned off 2-step verification on the
computer.  Went through 2-2tep verification setup again on the
computer. Revoked application specific password. Generated new
application specific password.  Used generated password to login to
google successfully.

I gotta say mere mortals are going to give up on this before they
retry multiple times as I did.  Not good for Google or for the
Market.  I was doing this for another person who would have been
satisfied to skip the market since email, messaging, and facebook were
the minimal set of apps needed and these were all on the phone
already.

For a start the directions on the Google website DO NOT WORK.  You
can't get Google Authenticator if you can't get to the Market.
Obviously not tested at all before this was rolled out.

On Aug 16, 12:11 pm, jotobjects <[email protected]> wrote:
> I have an Android Phone that cannot access the Android Market without
> setting up a 2-step verification code.
>
> You can't access Android Market without logging in.  Your regular
> google password does not work.  So you have to get a 2-step
> verification working first.
>

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