RTC: Authentication state already initialized

Last week I got the following error message when logging in to our Rational Team Concert server [v1.0.1].

“An internal error occurred during: “Logging into 130.1.xxx.xxx”.
java.lang.IllegalStateException: Authentication state already initialized.”

Snippet from the eclipse log [Workspace\.metadata\.log]
com.ibm.team.repository.client.internal.ServiceInterfaceProxy.invokeServiceCall(Unknown Source)
at com.ibm.team.repository.client.internal.ServiceInterfaceProxy.invoke(Unknown Source)
at $Proxy0.describe(Unknown Source)

This got me thinking about proxy server and proxy auth and figured out the problem is due to proxy server denying access due to incorrect password. The old password was cached in the General>network settings in Eclispe.

This highlighted another issue that the RTC server should be added to the “No Proxy for” list as need to go via proxy for internal network traffic.