I don't know if this is your problem but when my password wasn't working I realized it was because Caps Lock was on and my password was all undercase letters. Make sure you type in in the correct case. Hope that helps.
Is your caps lock on? It's at the left side of your keyboard Or you might have some type of firewall up, and the screen would look like this:To play Wizard101, you (or your parent) may need to make changes to your system configuration. When this is done, you will be able to play!
Wizard101 has failed to contact the game update servers. If Wizard101 was working before, try closing this window and running the game again.
If this is your first attempt to play, this issue is probably caused by a Firewall blocking access to the game or communication ports that the game is trying to use. Please make sure that Wizard101 is allowed to access the internet through your security software.
In your game installation directory, the file /Wizard101/PatchClient/BankA(and BankB)/WizardLauncher.exe needs to be allowed as well as /Wizard101/Bin/WizardGraphicalClient.exe. If you have not played before, some of these files may be absent. If your software requires specific ports, please allow TCP/UDP 12000-12999.