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Windows 8 + Live account + Internet + wrong password = stuck

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I dont know if this question has been asked, but here goes.

I have noticed this problem since the time I installed windows8. I have connected my live account to windows8 and I use it to login.

 

So at login time, if the internet is connected (usually wired) and i accidentally enter the wrong password, it shows the  spinning 'Welcome' but gets stuck there. No combination of keys work and I never get a prompt to re-enter the password. The only

way to fix this is by turning off the internet (pulling the wire ). That is when it says that the password is incorrect with the 'ok' button.

 

I was wondering if anyone else had this problem and is there is any fix to it.

 

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