It seems that this MAJOR problem has been carried through to WP8 phones as well, both my HTC Windows 8x and now Nokia Lumia 925 chronically experience this issue! Similar to if you have the wrong password on your Live account in Settings -> Email + Accounts
section. Problem is you can never seem to get the thing to accept the correct password for the Microsoft Account (kind of lame as this is a Microsoft Phone).
I verified that the following settings were applied, I even changed them rebooted, changed them back rebooted and no dice...of course this "fix" or Answered support question goes back to,WP7 and Mango (...because it's sweeter than an Apple), so selecting
3G connection is "On" in the highest network connection for a 4g phone is obviously wrong, though I have tried both 3g and 4g settings neither solved it.
MS please get this solved now and put out an update to fix this not simply an answered thread even if you have to open a "Crit Sit" to do it!