"Error 1" means the username stored in your cookie doesn't exist in the database.
Individual chunks of cookie data are separated by spaces, so if you used a space in your username that could be screwing it up (when it comes to the space in your name, it assumes the next word is the second chunk of cookie data instead of the rest of your username). Normally it shouldn't allow you to put a space there, but perhaps it snuck through. Go into phpMyAdmin and manually remove the space from your username, then clear the DK cookie and log in again.
Even if you don't have a space in your username, I'd just clear your cookies and try again. It may be stuck for some reason and could just need a manual cookie flush.
---Jamin
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Diablo 3 Lead Designer Jay Wilson:
“The development of a Blizzard game is sometimes a long affair. This is how long it took us to be ready.”
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