Sorry...? I am sorry. I guess I should of posted proof of my statement being complety true. What I am talking about is talked about in the below links. Also if you click the "Forgot Pattern?" on the moto droid button during the temporary lock out the same will occur.
BUG: Inable to login after "too many pattern attempts" with CORRECT username/password - Google Mobile Help
Issue 3795 - android - Couldn't unlock phone after "too many pattern attempts" - Project Hosting on Google Code
T-Mobile G1 Forum - Too many pattern attempts, now I can't login
I have since found out how to do the Hard Reset that should fix the problem but I am not going to try on my phone.
This is how you do a Hard Reset:
You can hard reset your Motorola Droid phone if you want clear all of the data off of the device and start fresh. Here
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