Try:-

Tools\Account Settings\Server Settings (under your news server title)
and tick "Always request authentication when connecting to this server"

Thanks Howard.. tried that, I receive a dialog box that asks me to input a
username, but not a password... so i still get permission denied... there is
also a tick box that says "Use Password Manager to remeber this value"...
ticking that seems to do nothing...

I feel i'm missing something quite simple...