Seems, that this is the problem has not been fixed yet. 

I went to a microsoft seminar a few years back and they were pushing the fact that you should NEVER maintain a persistent login.  That it should be limited then proceeded to provide some wild and unrealistic senarios to back up thier claims.  I do hope that the login ncontrol behaviour was not influenced by this view.  I have volunteers who only login 1 time every 6 months, and they are the ones who are most likley to forget thier passwords.  If the remeber password features worked it would definatly make dnn look better.

I tried running a gaming forum site off dnn last year and the remeber login was the most complained about feature, next to the bugs in the forum.  The lack of priority to getting this fixed makes me wonder if it's odd behavior is intended.