This issue occurred to me once in the past, but it was for a different reason. The first time it was because I had setup a Magento install with a domain of http://localhost. Magento only likes domains with dots in them. My new install does not have this problem, so what was causing the problem. And why was this only an issue with Chrome? I was able to login with firefox without an issue.
It turns out that my virtual machine is running a different date than my desktop. After reading a few posts, the best solution was to update the cookie lifetime in the configuration settings. I had to increase it significantly to 1000000, after saving the new configuration, the problem was resolved and I could use Chrome to login again.