I have two-step verification enabled on my Google Account, and I generated an application-specific password for my Android device (Infuse 4G with custom ROM in case that's relevant), and input it. After about a day, the "Sign-in error for USERNAME@gmail.com" notification appears and I have to generate a new password and input it again in order to use the account. Is this a known issue with two-step verification or is it just me doing something wrong?
This sounds very strange. I've generated a few app-specific passwords (which look like "abcd-efgh-ijkl-mnop") for a few devices and have never heard from them since. Google says: "Application-specific passwords do not expire"
On the other hand, main password, which has to be accompanied with security code ("12345") does expire quite quickly. Please, make sure you use 16-letter app specific passwords, not the main password with security code.