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XBox sign on issue

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Seems to be my afternoon for issues... Fired up the XBox360 this afternoon and instead of signing on automatically for me it has asked for me to verrify both my email and PW. This I have done and it asks me to go to XBox.com/forgot and reset my PW. This I have done, but I am in a loop getting nowhere and getting a fault code 80048821. I tried to re-download my profile and this hasn't helped. Right now the system asks me still to verify BOTH email and PW and then says I am SIGNED IN and gives me the correct screen name. THEN it asks me to hit the NEXT button....and up comes the message (AGAIN and AGAIN) that either my email or PW is incorrect and gives the same fault code and asks me to go (AGAIN) to XBox.com/forgot.... One endless loop. I have asked for help on two XBox forums threads and gone thru their formal trouble shoot and I have no suggests of a fix of any kind. Any and all suggestions please. Is there a way to delete my profile and restart it all over again? I am not even sure this would be a fix. NOTE the online MS LIVE site via my pc recognizes me with the new PW but the XBox stumbles....

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