Why does it state that my Email password is "incorrect" when I know it's not?

I

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I recently bought a 4th generation iPod Touch. When I try to set up my email account, it always tells me my password is wrong. I know the password is not wrong; I've re-entered it at least 10 times. I've tried deleting the account and starting over several times as well. I even tried it with an alternate email (gmail) with the same result. Has anyone found a solution to this problem?
 

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