As was suggested by Evil, I also cleared cache in wp-content folder…but to no avail.
Why do I keep getting the same asking of login information prohibiting me from administering for the first time?
If I put a wrong password and click to retrieve password, it replies on a blank page, “The e-mail could not be sent.
Possible reason: your host may have disabled the mail() function…”
Is it then related to my(host server’s) email function that WP2.0 keeps asking for a login after the fresh installation?