[Q] Blocked at the ‘YouTube Sign-In’ Dialog Box

I cannot believe I’m the only one with this problem but I see nothing about this in the forums.

Problem: After successfully booting with TouchNooter 2.1.31, after logging into both YouTube and Gmail, after seeing my Gmail and seeing the Market options 24 hours later, I realized I needed access to a different Gmail address. I registered Gmail #2 with B&N then repeated the rooting process but now I cannot log into YouTube from the Nook. I can, however, log into YouTube from the PC.

Questions: Could Google’s Two-Step Verification prevent logging into YouTube from the Nook? Could updating the firmware (from 1.1.0 to 1.1.2) before reregistering the device be a factor?

My Steps: (I’ve repeated this cycle three times)
• restore the Nook’s original ROM from the image made following jocala’s instructions.
• see the “Welcome to Your All New Nook” screen.
• register the N2E with the B&N account which uses Gmail #2
• decline to give a credit card number
• delete the partitions from the SD card using Mini Partition Manager
• burn new TouchNooter 2.1.31 image to SD card. Follow all TouchNooter instructions.
• boot Nook with TouchNooter . Screen ‘turns’ black but does not ‘flash’ black. Remove SD card. Reboot.
• launch YouTube from ADW Launcher.
• Fail YouTube login. “The username or password isn’t valid. A YouTube account is required. Please try again.”
• use NookColorTools/Manage Applications to clear the YouTube cache.
• Fail Youtube login. “The username or password isn’t valid. A YouTube account is required. Please try again.”

Additional Details
I updated the Nook (from 1.1.0 to 1.1.2.) before making an image of the ROM.
Talked to B&N. Verified the B&N account (using Gmail #1) is deleted.
Performed an “Erase and Deregister” from the stock state.
Performed an “Erase and Deregister” from the TouchNooter state (a bad idea).

Can anyone tell me why I am stopped dead at the YouTube sign-in dialog box?

Yes, I checked that YouTube is linked to Gmail #2.

Solved: Indeed, Google's 'Two-Step Verification' was the issue. To log into YouTube from the Nook I needed to generate an 'application specific password' using Google's tool then enter the resultant 16-digit password into the password field of the TouchNooter/YouTube dialog box.

If you have 'Two-Step Verification' enabled (and you should), go to your Google Accounts page. Select "Application Specific Passwords" from the left side of the page. Scroll down to the tool for generating the password. Tip: It's best to watch the video first.