OK, so I got it working - it is a password they email to you, not your fedex.com password. Now my problem is it generates the same rates independent of weight, or of zip code. The problem lies in the includes/modules/shipping/fedex_module
This file is not at all finished. If you look on line 124, you will realize that it won't generate the weights etc. from the shopping cart, it is set up with a static insured value of $20, weight of 2 pounds etc.
Somebody needs to finish this module, and it is over my head. I'm going to try, and if unable - I will hire somebody and give this back to the community working. Can't believe it was put up this flawed though, very incomplete - and somebody should note that when releasing a contribution...