I'm having the same problem with Fugu, and the terminal fix isn't working.Any other suggestions?
Try to access the phone via terminal.
type: ssh root@your ip here
Now it says that my password doesn't match the password in Keychain, and when I go to the keychain there isn't a place to change it..
edit: Okay, so I guess what I meant to say, is that I don't know what password to change in the Keychain. I'm new to this and confused...help?
p.s. sorry to the OP if I'm hijacking or anything!