.. and we all thought that "Cry"tek was just a name
Got the same problem, and I think it has something to do with the connection of the gamesas/gamespy databases. My guess is, that the account creation system of gamesas doesn't check the existence of the alias at gamespy's, and when we try to log in it may expect the gamespy password (of an account which doesn't belong to us).
Just give 'em some time. And think about another username, just in case.
Cheers!