Impossible to change mail settings in Lion?

Never experienced this in any other verion of OSX.
Mail app: Mail > Preferences > Account Information Tab
I delete password, close dialogue box, am prompted if I want to save changes, click save.
When I re-open the same Preferences windown, the password is still there. Mail will not save changes. Why?
Moreover, if my password is there, why is there a lightning bolt next to my account and mail will not check for new email?

Normally I was prompted for the password with a dialogue box. The computer was being difficult earlier and I simply had to hit "cancel" in that dialogue box to get out of the system for a moment ... once that was done, there appears to be no way to ever again enter one's password or check mail.
Tried clicking the "check mail" button to bring up the password prompt - nothing happens.
Entered the correct password in the mail preferences for that account - nothing happens.
The only way I could find to fix the problem is delete the account (IMAP), and re-create. Because it's IMAP, I don't lose any data, but it seems crazy that if one cancels out of the password dialog box, the ability to check mail is forever lost until you re-create your account.

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