Invalid password specified for ArcGISWebServices.

The solution is suitable for any version of Arcgis Server,I had tried to deal with the problem in 10.0 version,and it works well.

I got this one from ESRI link. Also, fixed up my problem by this way:

NOTE (ArcGIS Server): The ArcGIS Server Post Install will automatically launch after the service pack has been applied. The Post Install will prompt for the ArcGIS Server Object Manager (SOM), ArcGIS Server Object Container (SOC) and the ArcGIS Server Web Services user accounts and their associated passwords. To avoid disrupting the operation of your server installation you will need to use the exact same accounts and passwords that you used when you initially installed ArcGIS Server (or the last time you ran the Post Install). If you don't remember which ones you used you can have the Post Install create new ones for you, but you will need to update the permissions on your data and non-default output server directories to grant access to the new ArcGIS Server Object Container (SOC) account.

Link as follows:

http://support.esri.com/index.cfm?fa=downloads.patchesServicePacks.viewPatch&PID=43&MetaID=1270#install-Windows

i encountered this error after needing to reinstall arcserver. it appears to occur because the user accounts (som,soc,manager) are not removed after uninstall, and they still have their associated passwords, so when you go to reinstall, the passwords must match whatever you used to install it the first time. Or, alternately, just reset (admin tools, etc) the passwords for those user accounts and then go back and redo the post-install