The client code doesn't retry if it fails to get a token. It only
retries when syncdaemon tells the applet that auth has failed. If you
fail to get a token due to a 50x error on the server or something
similar, then you get a somewhat unreadable error dialog full of html,
and you will have to click on "Connect" in the applet (or quit/restart
it), to attempt getting another token. The error message is unfortunate,
but I don't think it's something to consider critical.

All the instances of the bug where the loop does happen seem to be
related to errors in the protocol getting misinterpreted as auth errors,
for which the applet sees AUTH_FAILED status, and attempts to get a new
token, as presumably the current/old one is invalid now. This has
already been fixed by Facundo in trunk, and is in the queue to land in
an SRU with several other fixes, which I hope to get out this week.
Upgrading to the beta PPA packages should resolve this case, so I don't
think it should be considered critical either.

If this is reproducable with nightlies/beta PPA packages, and a lot of
people are seeing it, then I think we can consider it critical, and in
need of another new fix. If it's then only happening in the 1.0.2
package in Karmic still, we need to raise the priority on the packaging
bug task for the bug which has already been fixed, and get it in an SRU
asap.

-- 
UbuntuOne stuck in an endless authentication loop (always changes to 
«Authentication failed»)
https://bugs.launchpad.net/bugs/437165
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