[ruby-on-rails] 535-5.7.8 Username and Password not accepted

Goto config/initializers/setup_mail.rb Check whether the configuration there matches the configuration written in the development.rb file.It should look like the following in both files:

config.action_mailer.smtp_settings = {
     :address =>"[email protected]",
     :port => 587,
     :domain => "gmail.com",
     :user_name => "[email protected]",
     :password => "********",
     :authentication => 'plain',
     :enable_starttls_auto => true,
     :openssl_verify_mode => 'none' 
     } 

This will most certainly solve your problem.