I don't have much to add to the original excellent description.  Using
64-bit on an Acer 5920 laptop.  I'm trying to log into Ubuntu One,
keyring prompt pops up, and I get the same behavior as described above.
I'm left with two choices.  Cancel, in which case Ubuntu One says I
cancelled a prompt and I can't get in, or enter a keyring password.

Then the keyring prompt will pester me every time I start laptop.

I followed some instructions on web to clear the keyring contents.  I
thought that made the problem go away, but the next time I tried to get
to Ubuntu One I was stuck with the keyring prompt again.

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https://bugs.launchpad.net/bugs/958507

Title:
  "use unsafe storage" gnome keyring dialogue is unusable

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