The two logins to the admin panel was an added security feature. It prevents people who might have hacked your board and stolen the automatic login cookie access to your admin panel, because they still need to have your password. .
I am still having problems using SMTP in phpBB 2.0.17 I have another server using phpBB 2.0.16 & SMTP works 100% with the same setting that I have in phpBB 2.0.17. I thought maybe there was a conflict of using the same account more than once so I removed my account from the older server & I still get the same error.