Keychain reset does not work

Question

Can't reset my keychain. Just upgraded to Mavericks, had to restart for an iTunes update and everything went downhill from there.
dozens of applications ask for access to 'local items', my user password doesn't work and i tried a few other passwords that it might have been, but i know i used my user password before installing mavericks, but that's not working.
Went online to try to find answers, got pointed to the 'reset my default keychain', clicked it and the program asked for the password for 'local items' keychain, tried my user password again, didn't work. The 'Login' keychain is now gone completely, it disappeared. Clicking 'reset my default keychain' brings the popup 'specified keychain could not be found', so that won't work anymore.
Looked for some more answers, one pointed to deleting the keychain entirely, which i tried but the option to delete 'local items' is greyed out.
Attempted keychain first aid, it asks for a password to access 'local items'. after trying my user password again, it didn't work. now the first aid displays an error message every time i attempt a repair. here's the text from my latest attempt:
Repair started
Checking keychain configuration for yousefshohayeb (user ID=501)
Home directory is /Users/yousefshohayeb
Checked login keychain
Error: login keychain not found
Created a new empty “login” keychain.
Checked password for ~/Library/Keychains/login.keychain
Checked settings for ~/Library/Keychains/login.keychain
Settings for ~/Library/Keychains/login.keychain may cause the keychain to be locked
Current values: lockOnSleep=yes, autoLock=5 mins
Unable to change keychain settings (-128)
Checked default keychain
Checked contents of ~/Library/Keychains/login.keychain
Warning: some problems were not fixed
Repair failed
after that, i restarted my computer, when i put my username to login to my account, i got asked to provide the keychain password for 'local items'. This happened while i was logging in and the computer refused to log into the account until i pressed the 'cancel' button.
Nothing is working, what do i do?
As a side note, i either want to unlock the 'local items' keychain or i want to stop messages from popping up, which i attempted and again hit the 'local items' password wall. I also can't check 'allow user to reset password using Apple ID' because the option is greyed out even after unlocking it to change items.

Answer 1

Your login.keychain password is out of sync with the new iCloud keychain and needs to be re-sync'd.
The new iCloud keychain is either called "Local items" if you don't have syncing enabled or "iCloud" if you enabled iCloud keychain sync.
Open 'Keychain Access' Application
Select the 'login' keychain from the keychains list
Click the lock at the top to lock the login keychain
Click the lock again to unlock the login keychain
After entering your login keychain password you should be presented with a dialog:
Clicking the reset button will re-sync your login.keychain password with the iCloud keychain password.
If everything from the above fails for whatever reason the last resort you can do the following:
Open terminal
cd ~/Library/Keychains
ls   
When you 'ls' here you will see a folder that contains a bunch of random number liks so:
94ED610F-DD96-4ECF-A2BC-7D2F8651A464  (this number is unique on each system)
rm -rf 94ED610F-DD96-4ECF-A2BC-7D2F8651A464
Reboot
<when you log back in everything should be back to normal>