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I have the same issue and raised a PMR at the beginnong of last week.
Traveler version on server is 8.5.3.3 Build 201209151353
On Android the version is described as 8.5.3.3 201209051554
I'm not an Android expert, but my impression is that it is related to the storage and encryption of my password. The issue usually occurs after a period of hibernation or a device restart.
In the trace log there is an error reported as:
2012/11/19 08:04:43.636 1 FINE AppCrypto.decryptStoS:234 pad block corrupted
javax.crypto.BadPaddingException: pad block corrupted
From other reading on the Internet, I believe that Android 4.2 included an update to some of the encryption modules.
Feedback response number WEBB92FJLZ created by ~Fritz Brenimanflar on 11/27/2012