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Allan,
It seems like you're just having connectivity issues.
If your password has worked all this time, unless your account was compromised, or the App Store is barfing, you should be able to connect.
I'd say, leave it for a bit, and try again in a while.
I have to say one thing, though: if you had a problem of the same description with a PC or Windows product, would it get its own thread in the General forum of this web site, with such a strongly-worded subject line?
Not having a go at you, just a quiet observation. The number of people who have Windows issues and don't post about them is simply telling of how well the Apple system just works. That, when something does screw up, it becomes a big deal.
Kudos to Apple, and, your problem will be resolved soon. I'm sure of it.
H
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