Resolution for me in FTM 2012 was confusion over correct "username". Re-registered FTM 2012 and checked the box to remember me on Ancestry.com. Then when attempting login through FTM 2012 it populated "username" automatically with my Ancestry.com member name...that is not the same username I use to login to Ancestry.com. So instead of "username" like email@example.com
, "username" needed to be WatsonJulianFamilyTree, which you can see in the post is my member profile name.