--- a/services/sync/modules/browserid_identity.js
+++ b/services/sync/modules/browserid_identity.js
@@ -219,46 +219,48 @@ this.BrowserIDManager.prototype = {
     this._token = null;
   },
 
   async observe(subject, topic, data) {
     this._log.debug("observed " + topic);
     switch (topic) {
     case fxAccountsCommon.ONLOGIN_NOTIFICATION: {
       this._log.info("A user has logged in");
+      // If our existing Sync state is that we needed to reauth, clear that
+      // state now - it will get reset back if a problem persists.
+      if (Weave.Status.login == LOGIN_FAILED_LOGIN_REJECTED) {
+        Weave.Status.login = LOGIN_SUCCEEDED;
+      }
       this.resetCredentials();
       let accountData = await this._fxaService.getSignedInUser();
       this._updateSignedInUser(accountData);
 
       if (!accountData.verified) {
         // wait for a verified notification before we kick sync off.
         this._log.info("The user is not verified");
         break;
       }
-      // intentional fall-through - the user is verified.
     }
     // We've been configured with an already verified user, so fall-through.
     case fxAccountsCommon.ONVERIFIED_NOTIFICATION: {
       this._log.info("The user became verified");
 
       // Set the username now - that will cause Sync to know it is configured
       let accountData = await this._fxaService.getSignedInUser();
       this.username = accountData.email;
-      Weave.Status.login = LOGIN_SUCCEEDED;
 
       // And actually sync. If we've never synced before, we force a full sync.
       // If we have, then we are probably just reauthenticating so it's a normal sync.
-      // We can use any pref that must be set if we've synced before, and check
-      // the sync lock state because we might already be doing that first sync.
-      let isFirstSync = !Weave.Service.locked && !Svc.Prefs.get("client.syncID", null);
+      // We can use any pref that must be set if we've synced before.
+      let isFirstSync = !Svc.Prefs.get("client.syncID", null);
       if (isFirstSync) {
         this._log.info("Doing initial sync actions");
         Svc.Prefs.set("firstSync", "resetClient");
-        Services.obs.notifyObservers(null, "weave:service:setup-complete");
       }
+      Services.obs.notifyObservers(null, "weave:service:setup-complete");
       // There's no need to wait for sync to complete and it would deadlock
       // our AsyncObserver.
       Weave.Service.sync({why: "login"});
       break;
     }
 
     case fxAccountsCommon.ONLOGOUT_NOTIFICATION:
       Weave.Service.startOver().then(() => {

--- a/services/sync/tests/unit/test_browserid_identity.js
+++ b/services/sync/tests/unit/test_browserid_identity.js
@@ -260,44 +260,16 @@ add_task(async function test_ensureLogge
     /Can't possibly get keys; User is not signed in/, "expecting rejection due to no user");
   // Restore the logged in user to what it was.
   fxa.internal.currentAccountState.storageManager.accountData = signedInUser;
   Status.login = LOGIN_FAILED_LOGIN_REJECTED;
   await globalBrowseridManager._ensureValidToken();
   Assert.equal(Status.login, LOGIN_SUCCEEDED, "final ensureLoggedIn worked");
 });
 
-add_task(async function test_syncState() {
-  // Avoid polling for an unverified user.
-  let identityConfig = makeIdentityConfig();
-  let fxaInternal = makeFxAccountsInternalMock(identityConfig);
-  fxaInternal.startVerifiedCheck = () => {};
-  configureFxAccountIdentity(globalBrowseridManager, globalIdentityConfig, fxaInternal);
-
-  // arrange for no logged in user.
-  let fxa = globalBrowseridManager._fxaService;
-  let signedInUser = fxa.internal.currentAccountState.storageManager.accountData;
-  fxa.internal.currentAccountState.storageManager.accountData = null;
-  await Assert.rejects(globalBrowseridManager._ensureValidToken(true), "expecting rejection due to no user");
-  // Restore to an unverified user.
-  signedInUser.verified = false;
-  fxa.internal.currentAccountState.storageManager.accountData = signedInUser;
-  Status.login = LOGIN_FAILED_LOGIN_REJECTED;
-  // The browserid_identity observers are async, so call them directly.
-  await globalBrowseridManager.observe(null, ONLOGIN_NOTIFICATION, "");
-  Assert.equal(Status.login, LOGIN_FAILED_LOGIN_REJECTED,
-               "should not have changed the login state for an unverified user");
-
-  // now pretend the user because verified.
-  signedInUser.verified = true;
-  await globalBrowseridManager.observe(null, ONVERIFIED_NOTIFICATION, "");
-  Assert.equal(Status.login, LOGIN_SUCCEEDED,
-               "should have changed the login state to success");
-});
-
 add_task(async function test_tokenExpiration() {
     _("BrowserIDManager notices token expiration:");
     let bimExp = new BrowserIDManager();
     configureFxAccountIdentity(bimExp, globalIdentityConfig);
 
     let authenticator = bimExp.getResourceAuthenticator();
     Assert.ok(!!authenticator);
     let req = {uri: CommonUtils.makeURI(