Thunderbird keeps asking for password even if the password is correct

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http://askubuntu.com – I'm using thunderbird-11 on ubuntu 12.04. Recently after an update suddenly thunderbird is no longer able to recognize my password and keeps asking for it with the message "login failed - retry". I know my password is correct because my calendar in thunderbird which uses the same password and my webmail is able to take that password. I'm connecting to a 2010 Outlook exchange using imap. Tried deleting key3.db signons* , removing saved password, reinstalling thunderbird but nothing helped. Not being ale to send mails is frustrating :-( !! (HowTos)