Lock screen - password incorrect

I had the same issue. It is likely the ownership is wrong for /etc/shadow (See section "gnome-screensaver authentication failure with incorrect /etc/shadow permissions" of this page).

You need to sudo chown root:shadow /etc/shadow then sudo chmod u=r,g=r /etc/shadow See this bug report.

The interesting question is "Why ownership changed?". Because I don't remember changing it.

I could resolve this issue with the following permission changes:

sudo chown root:shadow /etc/gshadow
sudo chown root:shadow /etc/gshadow-
sudo chown root:shadow /etc/shadow
sudo chown root:shadow /etc/shadow-

Found here: http://ubuntuforums.org/showthread.php?t=1006366