Fix some problems with the ENTER_PASSPHRASE state in sync setup....

chrome/browser/sync/sync_ui_util.cc

 // Copyright (c) 2010 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 #include "chrome/browser/sync/sync_ui_util.h"
 
 #include "app/l10n_util.h"
 #include "base/utf_string_conversions.h"
 #include "chrome/browser/profile.h"
 #include "chrome/browser/sync/profile_sync_service.h"
@@ skipping 69 matching lines @@
   if (!service) {
     return PRE_SYNCED;
   }
 
   if (service->HasSyncSetupCompleted()) {
     ProfileSyncService::Status status(service->QueryDetailedSyncStatus());
     const AuthError& auth_error = service->GetAuthError();
 
     // Either show auth error information with a link to re-login, auth in prog,
     // or note that everything is OK with the last synced time.
-    if (status.authenticated) {
+    if (status.authenticated && !service->observed_passphrase_required()) {
       // Everything is peachy.
       if (status_label) {
         status_label->assign(GetSyncedStateStatusLabel(service));
       }
       DCHECK_EQ(auth_error.state(), AuthError::NONE);
     } else if (service->UIShouldDepictAuthInProgress()) {
       if (status_label) {
         status_label->assign(
           l10n_util::GetStringUTF16(IDS_SYNC_AUTHENTICATING_LABEL));
       }
       result_type = PRE_SYNCED;
-    } else if (auth_error.state() != AuthError::NONE) {
+    } else if (auth_error.state() != AuthError::NONE ||
+               service->observed_passphrase_required()) {
       if (status_label && link_label) {
         GetStatusLabelsForAuthError(auth_error, service,
                                     status_label, link_label);
       }
       result_type = SYNC_ERROR;
     }
   } else {
     // Either show auth error information with a link to re-login, auth in prog,
     // or provide a link to continue with setup.
     result_type = PRE_SYNCED;
@@ skipping 77 matching lines @@
   }
   if (service->HasSyncSetupCompleted()) {
     ShowOptionsWindow(OPTIONS_PAGE_CONTENT, OPTIONS_GROUP_NONE, profile);
   } else {
     service->ShowLoginDialog(NULL);
     ProfileSyncService::SyncEvent(code);  // UMA stats
   }
 }
 
 }  // namespace sync_ui_util