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I'm not sure really. I had it myself a while ago, I thought I was hacked, because I couldn't log on after trying for a while, even resetting all my PWs. But as soon as I had a friend report it to a GM, I managed to log on again. No typo, same name, same PW. Maybe server was just busy/buggy, don't know. Should see if it goes away after a while I guess.
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You still have to use both PoL ID and password. SE account is only needed if you are using a token. To use that once you you add the member its down at the bottom it ask you to enter the SE ID and if you ant to use the one time password. No way to just use you SE ID to log in.