Got an unusual issue with my Device Lock Security password.

Just installed NitDroid (woohoo, you devs rock!)

I deleted my MFE Account to disable the screen lock per advise of forums. Now that Android is working great, I'm re-configuring my MeeGo to work like it use to (I backed up and wiped my phone clean before loading NitDroid).

Here's the problem:
When I try to create a new Security Code for my device (Settings > Security > Device lock > Autolock) the phone goes to a screen that says "Define security code now? Security code not defined"
I click 'Yes' and now there are the two fields to enter my new code, the input text and confirmation. When I enter a new security code (or even my old one) I get an error saying "Wrong Security Code"

Anyone know what's going on and why I can't setup a new security code?! (I've even tried in devel-su mode to no avail).

Thanks for the insight guys/gals!