IT DOES NOT USE the current gmail password.
IT WANTS the ORIGINAL gmail password -- i.e. the one that you used when you went through the initial phone setup procedure.
If ADB is enabled on the phone, then you don't need to reset.
Connect USB to your computer, "adb shell",
update system set value=0 where name='lock_pattern_autolock';
update system set value=0 where name='lockscreen.lockedoutpermanently';
You could also re-flash the rom if you want to try in the Crescent area over on Modaco
Wow there are some long discussions on it : http://code.google.com/p/android/issues/detail?id=3006