Trying to connect client to server and get response during the wizard "An account for this server already exists on the local machine. Only one account per server is allowed."

Machine history is:
3.2 Client was originaly connected to a 3.2 server - 1 account only.
Upgraded Client to 3.8.
Tried to connect to newer server and got the error mentioned.
Dropped 3.2 server connection (no longer worked anyway)
Tried to connect to newer server and got the error mentioned.
* On alternate test machine which was also connected to ifolder, reconnected just fine - server up test. Disconnected.
Tried to connect to newer server and got the error mentioned.
Tried to connect to 3.2 server just to test, it responded error and advice to update server.

It's great having an error, can't seem to find any advice on how to fix it, and my guesses at what it means didn't help.

Any advice on how to fix?