still experiencing issue. while password prompt comes up, I am now
greeted with a "GPGME: Error Decrypting" error. none of my baskets are
GPG encrypted, only simple password protection. using same basket
folder, after downgrading from 2.0 beta1 to 1.0.3.1 (Karmic package), I
am allowed entry to password-encrypted baskets again.

-- 
Basket password problem - fixed in beta 1
https://bugs.launchpad.net/bugs/544849
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