I used the wrong password to log in when first starting 1.2 b4, and I got different behavior depending on which box I clicked.
If I clicked the login button in the upper left, I got the login screen, but then when I entered the wrong password, the screen disappeared. I got no notification that my password was wrong, just dumped back to the opening screen. At that point, I didn't know if the login was correct, but was working in the background or if the login was wrong.
If I clicked the records button in the middle-upper right, I got the login screen, but when I entered the wrong password there, the login screen disappeared, but the create new account screen immediately opened. At least then I had a clue that I had used the wrong password.
I didn't try any of the other buttons so I don't know if they require a password, and if they do what their behavior is.
A warning that I entered the wrong username/password would be appreciated, and you might want to standardize the behavior when a wrong password is entered.