IOS5 - iCloud password rejected, Settings app freezes

My wife and I have had a MobileMe account for a couple of years. After we both installed iOS5, I upgraded us from MobileMe to iCloud. I then set up the iCloud options on my phone without any (immediately obvious) issues. Setting up iCloud on both our Macs went smoothly as well.
Here's the problem: every time we've tried to set up my wife's phone with our iCloud credentials, the password is rejected. Not only that, but on each attempt the Settings app actually freezes as soon as the 'incorrect password' alert is displayed! She has to force quit Settings, which is really strange. We've since retried the iCloud setup process on her phone every couple of days since, and the same exact thing happens every time. I even reset our password and updated everything accordingly, and entering it on her phone it doesn't resolve anything.
This is one of several presumably interrelated iCloud password issues I've had. In addition to the issues on my wife's phone, mine prompts me daily to verify my iCloud password. Finally, our Airport Extreme is flashing amber and Airport Utility reports that my MobileMe password is incorrect. I guess I should probably post those separately.
If anyone has any advice, I'd sure appreciate it.

Welcome to the Apple community.
Since you are encountering the same problem on multiple devices, it may well be worth considering that iCloud has had some issues today. You may wish to try again later.

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Message was edited by: Carolyn Samit

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I found this on the Flexibit website.
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IOS5 - iCloud password rejected, Settings app freezes

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