In August the same "user name or password is incorrect!" problem had appeared but it was fixed in 24 hours.
You can check it here: Safe-Mail.net - The user name or password is incorrect!
I really think the problem is that they grew too fast too soon and left the system virtually unchecked until critical mass was reached and then needed to back peddle.
Once it's back up (if it will ever be) delete all mail and leave Safe-mail!
I ll do the same once I'm able to grab some contact information out of Safe-mail.