Hi

Your script for login screen shouldn't work.

for password field you have to use below script

edit_set("Name of the password field",password_encrypt("your password"));

otherwise

password_edit_set("your Password field","encrypted password");

suppose if you got any pop-up msg you can handle it with help of recovery manager.

I hope i answered your questions

Before you write any code you should scope out what your proofs will be.

Test automation is an engineering process with that said it is advisable to

1) establish test scope

2) generate requierd gui map inventory

In your example of login i would hope you are minimally testing system denial and system access.

If this is the case then you will need to minimally produce one negative result which in most cases will produce a popup indicating such. This is itself a branch of logic that should be tested. This will also highlight up front the need for the popup to be learned named and saved in the proper gui map.

Now with that out of the way you pick your login data  because it will produce a predicatable result

valid id valid pass = system access. Any deviation from this is a defect regardless of the stimuli. 

So dont waste time wirting fancy recovery code? what are you recovering from? a defect? Attacking the "what" will make the "how" much easier .

The core of automated testing is to writev softwarevto effectively and efficiently prove the application under test is acting as expected.

eliminating the password from the test script.

Correct me if I'm wrong.