ClinicOffice update 1081 increases the level of password encryption in your database.
If you have several ClinicOffice computers and you update ONE of your computers to 1081 and then log on (thus upgrading your database 1081), then any other computers running older ClinicOffice builds (i.e. 1080 and before) will report "Incorrect Password" when trying to logon. This is because your passwords have been re-encrypted and the older ClinicOffice builds can't recognise them.
The simple fix is to click TOOLS | CHECK FOR UPDATES on all your computers and make sure update 1081 is installed on all your computers.