I think it's the first problem you'd described that's giving those "malformed" messages. With that said, we should focus on fixing the bad login issue.
Does the bad login happens only on your new machines/old machines, or both. And how often do they happen?
The only time th bad login error comes up is when you're using an user account or there's something wrong with the qubeproxy account.
So are you using user account? or the qubeproxy account? If you're using the qubeproxy account, did you change the default password or anything like that?