Have finally managed to solve that for myself.

Have you checked /etc/hosts. With hardy, the initial entry was something
like:

127.0.0.1 localhost
127.0.1.1 aaa.bbb.com

when it should be

127.0.0.1 localhost
127.0.1.1 aaa.bbb.com <name of machine, e.g. ubuntu>

-- 
[users-admin] Unlock -> "Could not authenticate. An unexpected error has 
occurred."
https://bugs.launchpad.net/bugs/194496
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