Unfortunately, this does not work for me. I have read similar threads where lucky folks got such a prompt, but all I get is the captcha screen--nowhere to enter the new password. This happens whether I try market or my gmail account under My Accounts.
I talked to Motorola last night and they said the only solution is to do a hard factory reset and lose everything.
Since you got the prompt, can I ask what kind of phone you have? I have a Droid X running 2.3.15
If one must do a hard reset every time they change their password, then this is a MONUMENTAL DESIGN FLAW of the droid. Had I known, I would have never purchased it.
I will do the hard reset, but most likely I will get rid of the phone, go back to my old LG Voyager, which never gave me a problem, and wait for Verizon to carry the iPhone. It is only a matter of time.
I can't express the degree of my disappointment in the Droid. Changing your email password on a regular basis is simply a good habit, whether or not your account has been compromised. To have to reset your phone and spend hours replacing apps and contacts and other info is simply unacceptable.
Consumers should be warned about this before they purchase the device. It is a colossal defect.