FF16 always fails to sync, it always shows "Sync encountered an error while syncing: Incorrect account name or password. Sync will automatically retry this."

I'm having this problem since few releases ago, whenever I start FF, it always fails to sync, showing this line on the bottom "Sync encountered an error while syncing: Incorrect account name or password. Sync will automatically retry this action". First thought that the prob was incorrect credentials, but I can freely log-in https://account.services.mozilla.com I tried unlinking and linking my device again, it still happens.
I waited thinking that they'll fix this, from a release to another, today updated to the last version and it still happened.
Firefox: ~16.02
Windows 7 Ult SP1
http://img853.imageshack.us/img853/4070/ffsyncprob.png
Awaiting reply,
Thanks.

I am having this problem with FF 19.0.2 on Win 7 Pro. The sequence of events is:
1. Start Firefox. Get the error bar about incorrect account name or password EVERY time. I close the bar. If I wait a while and then ask FF to try again the error bar reappears.
2. Click on preferences from the bar, and get a dialog "Your password was rejected by the server, please update your password." I click "update" and then am prompted for the master password for the security device. I enter that and am presented with an "update password" dialog.
3. Enter my old password and click "update password." Receive error message "Password incorrect, please try again." I click update again and get the message "Your password has been changed."
4. However now Sync no longer seems to be set up. I go through the setup ritual again, and find I am back where I started.
I have cleared cookies, tried everything in safe mode, and unlinked and relinked the computer. I have verified I have the right password entered at [https://account.services.mozilla.com/ https://account.services.mozilla.com/] None of this helped. The problem is still there, even in safe mode.

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