openid login doesn't work. wrong password/username

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Hi all. I have been searching for a solution for this for over 5 months now and search this forum and the docs multiple times.

Every time I try to login with an openid url it gives me this:
wrong password/username
As if it is just ignoring what I entered anything in the openid field.
Now this isn't a big deal (that's why I didn't post before), however since I'm now making a new layout for this site I can easily implement this now if I get this fixed.

Some info on the install:
version: 5.4.0.5 upgrade 2 times from 5.3.*.*
Site was moved from hosting provider 2 times.
Currently has about 150 + user and 70+ pages (excluding user pages)
And I have modded about 6 files to fix shortcomings that I needed to make the theme look good (small mods, files in the concreted folder still original)

I hope some of you have any idea why it keeps erroring out. I really would like to login with my google account :D