If you are being prompted when engaging mass storage mode or by desktop manager when it connects to the BlackBerry, then it is the device password. If you are restoring an encrypted backup, you will be prompted for the password provided when the backup was created.
Make sure your password is what you think it is. Make sure you didn't enter the letter when you thought you were entering a number. And make sure if you thought you were entering an upper case letter that you didn't enter lowercase by mistake. Posted via BlackBerryForums.com Mobile
The problem is what you think you are entering on the device is not what you are actually entering; or else you really don't know the password. Posted via BlackBerryForums.com Mobile