Thanks for hel over my problem.

In the end I found the problem was with keychain. Fortunately my keychain was 
very small, and could erase the login.keychain file, letting me start again. It 
was keychain that was not allowing me to save my mobile me password, and hence 
I was getting the error message.

Perhaps this will help someone else at a later date.

Happy Easter to everyone!

Ranulph

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