Windows XP may reject the password that you enter manually in the installed applications like Outlook Express, MS-Money etc. This issue occurs due to the enabled storage option of Credentials and .NET Passwords. This is primarily .NET passwords but it also stores passwords for network drives, websites and other applications.
To resolve the issue, disable Storage of Credentials and .NET Passwords. To do so, please perform the following steps:
1. Click Start, Run.
2. Type regedit and click OK.
3. Click "+" beside HKEY_LOCAL_MACHINE
4. Click "+" beside SYSTEM
5. Click "+" beside CurrentControlSet
6. Click "+" beside Control
7. Select Lsa key
8. In the right-pane, double-click DisableDomainCreds key
NOTE: If this key is missing from the registry key, you may need to create this key.
9. Change the value to 1
10. Close the registry and restart the system.
SOURCE : MeraWindows Newsletter.
