I encounter the same bug.
After an upgrade from dapper to edgy, vino don't accept my password.
To be precise, it seems it worked after the upgrade for something like one week
and then it stopped, maybe after an update, but not sure
I tried changing it with vino-preferences, didn't solved.
I then removed and purged vino, reinstalled, still didn't worked.
I then generated a password from command line and changed the password within
gconf-editor and it worked.
I encountered this bug on an account I used to vnc to when I was in
dapper, but that bug didn't happen on antoher user on the same system
that didn't used vnc when the system was running dapper.
Also, I cannot reproduce this bug on an installed edgy system (not
upgraded from dapper).
I wasn't able to reproduce the bug
** Changed in: vino (Ubuntu)
Status: Confirmed => Needs Info
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vino won't accept my password
https://launchpad.net/bugs/65795
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