FWIW, I have resolved this problem. Here's what I did:

You can download a standalone database file repair tool from Microsoft. They
call it the "Standard File Repair utility." A link and instructions on how to
use are a little less than halfway down this page:
http://support.microsoft.com/kb/902466/en-us

The page identifies the tool for Money 2000-2003. But, I used it on my 2006
Small Business file and it worked just great.

Microsoft seems to assume that you can always get to File > Repair Money
File > Standard File Repair.

On my version, this is actually not possible until after you have
successfully opened your database file after having entered the correct
password. But, if the database file is corrupted, the file may not open at
all. And thus, you will need to use the standalone tool, which you execute
independently of the main Money application.

Happy file repairing !!!
Wheew!

"donald" wrote:
- quote -

"Cal Learner-- MVP" wrote:
- quote -

Thanks for the tip. Unfortunately, it looks like this is maybe an option
that I turned off at some point.

Oops, again! :-o

In microsoft.public.money, donald wrote:

- quote -

Money 2006 does make a backup by default upon exit, and keeps the
latest 4. You might do a search for *.mbf to see if there is such a
backup.

I am running Money 2006 for Small Business. I guess MS does not announce
pending outages. Apparently, a maintenance event was occurring while I was
working in the application on Aug. 17 at about 5 p.m. MST. I recieved a page
error and the application crashed. Since then, (now the evening of Aug. 18) I
cannot open my database file!

If I enter the correct password, I receive: "The e-mail address or password
is incorrect. Please try again. # If you are sure that you typed your
credentials correctly, the server may be undergoing maintenance. Please try
again later. If you are opening an existing file, sign into your Money file
to work offline."

If I enter an incorrect password, I get a completely different message: "The
password you entered was incorrrect. Please try again."

To me this tends to support the idea that my problem has something to do
with the the Aug. 17 maintenance, and that it is not an odd coincidence.

I am beside myself. I actually had no idea Money was contacting MS servers
for authentication everytime I used this program. I don't have a very recent
backup. I am literally sick to my stomach.

I can open older files, but not my current one. Any ideas? Did the
maintenance cause my database to become corrupt? Am I ever going to recover
my data?

(Please, no rants about backup. I know that part is my fault. Still, any
help is much appreciated.)