I see this error from time to time when connecting to a network share from a new Windows 2008 server to an old Windows server. However, I can usually connect using \\servername from the old server to the new server. After a few times of putting in my password to connect, the user account on the old Windows server becomes locked out. So then I get the error message "Account is currently locked out and may not be logged on to".
I also get the error "the specified network password is not correct". This error message led me to the correct answer. Since the issue happened on a Windows server 2008, I followed the procedure in the reference link below:
1. run secpol.msc
2 Navigate to Local Policies > Security options > Network security: LAN manager authentication. On my Windows 2008 server, it was blank
3. Next I selected NTLMV2 session secure if negotiated
No reboot needed, it started working after the change. After I was finished copying files, I change it to "NTVLM2 responses only" value.
reference:
http://serverfault.com/questions/91797/windows7-the-specified-network-password-is-not-correct-when-the-password-is