I already answered you other post, but you've now encountered additional problems and I'm not sure that I know the full story of what you are doing/have done.
Is this the first time that you have used the key to activate a copy of OneCare or have you installed and activated on another PC already? If it is the first time using it, as I replied in the other thread, you will need to exchange your retail copy at Office Depot as a key can only be used once and you have a used key or a duplicate key.
I am not sure why you are trying to reset your password if the error you encountered is that the key is in use. If you submitted a password request for a LiveID and then cannot confirm the link, the password remains unchanged. Of course, that may mean that you cannot access the LiveID since you don't know the password. Check the copy/paste of the link very carefully. If it is exactly the same and it still fails to work, submit the request again.
I'm sorry that you've encountered such trouble.
How to reach support (FAQ) - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=2421771&SiteID=2
Unofficial path - send me an email at sboots@mvps.org with a subject line including "OneCare Activation" (to get past my spam filtering) and in the message body, tell me what country you are in, your forum nickname, and paste this link
http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=3749013&SiteID=2
I am not online 24x7, so you may be waiting for a reply, but I'll do my best to hook you up with support.
-steve