I am having the same problem on Empathy 3.3.3 + Ubuntu 11.10, only with
ICQ. Doesn't matter which icq account or password I enter, 1 second
after activating the account it shows "status is set to offline". Debug
log: http://pastie.org/private/fpwkf5rjpn9m0xpmkfrk7w

** Also affects: empathy
   Importance: Undecided
       Status: New

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https://bugs.launchpad.net/bugs/845683

Title:
  Empathy reports "Authentication Failed" for multiple types of
  accounts.

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