There is a known bug in 2.11 where the password after becoming an MD5 hash drops the leading zero (if it has a leading zero) which causes the verification failure. Usually changing the password will fix the problem because most likely the new password when hashed will not have a leading zero to be dropped. This bug has been fixed in the private beta and will be included in the public beta when it's released.
I am having the same problem on the mac client. I've tried changing the password several times, but nothing. I guess I'll have to wait for the next public beta. Keep up the good work, it looks really good.
I will be fixing this in the next version where it will detect the "http://" portion and know if it's been typed in or not and will make changes as needed to get the correct address that Blogg-X needs. I am trying to remove as much confusion from the program as possible.