Fresh Install multidb and new blog password error?

So I thought I had a problem with a faulty plug-in did a fresh wpmu and mutidb install but I keep on getting a password error when creating a new blog. The new created blog shows up fine but when I go to log-in It says to use admin and my existing password and it keeps telling ERROR: Invalid user name. Everything Is working fine except the password issue. I don't think Its an error in the db-config file.