Strange...it's back to asking for my FB password every two hours. But I still have all of my FB contacts synced.
Maybe it worked just long enough for me to sync once, then stopped working again?
And I'm using DC 3.2.3, a 2.1 ROM. I also wiped the Dalvik cache before flashing the kernel - not saying that had anything to do with it but you know with phones, everything you do can affect everything else in strange ways.
