I had this problem after a clean install of Jaunty while keeping my
/home partition intact and choosing a new root password. The network
applet didn't seem to be responding to typing in the password, but it
was in fact asking for my former password. This problem was solved by
deleting all files in /home/.gnome2/keyrings and now the applet accepts
the current password, however I am still prompted for a password with
every login and am unable to permanently allow it.

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network-manager fails to use keyring, keeps prompting for password
https://bugs.launchpad.net/bugs/241358
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