[Google-Desktop] "GD could not Index Gmail"

After installing GD, I got an error message "GD could not index your
Gmail".
I checked my preferences, and found my Password for Gmail incorrect.
My username was correct, so I corrected my Password and hit Save. Got
the same error message, and in preferences found my Corrected Password
back to the original Incorrect password. I have signed out of Gmail,
and signed back in with no problems, so I know my Password is Correct.
HELP!!
THANX!!
daviddd