I've got the same problem as the original poster, although I haven't run out of unlocks, simply because I am unable to unlock.
For the record, I am confident I am using my GAMEpassword. After a few failed attempts, I created a new GAMEpassword in my account details on the LfS website. However, I still get the same error message:
Needless to say, this is more than annoying. Any help is appreciated.
Greetings,
RLeS
EDIT: Uninstalled LFS 2, downloaded and installed Y, changed my GAMEpassword again to a 8 character password. Now unlocking worked.