No, no, we didn't lose the password files. That would be very bad!
In your case, were you using the Method API, Outlook Addin, or Import Export and password attempts failed too many times? They have security features on them that will lock the account if a password attempt is made and failed too many times in a row. It's a good thing really, security is always good. But it's really inconvenient.
On the regular Method login, however, it's on "version 2" of this security algorithm that unlocks itself after a set amount of time. All other areas that are too inconvenient will be changed to "version 2" over the next few months.
Try again now, we released the lock on your login.
Sorry for the inconvenience,
Paul