Ok. Try running the file you downloaded as Admin. Then run the launcher as admin. It should download, patch, download, patch, about 4 or 5 times. Once it does that click start. Your account is good and active, the game is what is making your log-in not work because the new version is not getting on the game.
I have this same problem - can't log in in the game. I also can't login to wasabii. Made a new account, since I haven't logged in with my old one in a few months, and I still had the problem (can't log in in game and wasabii). I'm running it on winXP. I'm going to try all the solutions you posted. (I tried to describe my problem with as much detail as possible). I'm going to post what fixed it for me if I fix it.