I tried to anwer your post but it keeps getting tagged as spam.
I just had the exact problem yesterday. If setting the password in single user mode does not work you will have to replace your Netinfo Database with the backup copy. Go here for instructions.
http://docs.info.apple.com/article.html?artnum=107210
It worked for me.
I just started having this issue today. Found the log file to be over 3gb. Has anyone resolved this issue or figured out what is causing it?
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