Here is what I would do:
1. Create a table called "PreviousUserPasswords" and make some fields - ID, userid, Password DateCreated,
2. Open Admin/Users/Password.ascx.vb and find "Private sub cmdUpdate_Click()" around line 269.
3. put some codes before '1. check new password and confirm are the same''
[Some codes - no actual code, just comments. sorry for me being lazy lol ]
'0. Check the new password against a table PreviousUserPassword.
'execute sql (e.g. where password = txtNewpassword.txt) to check to see if there is any same password the user created before.
'if there is a same password in the table, throw an error message. If it's not same, update the user password and also add the new password to the PreviousUserPasswords. Overwrite the oldest password if there are 12 passwords or more associated with this particular user.
lol. 12 passwords... I wouldn't be able to login to the site 4ever if i forget my password. Just imagine,,, users keep tying their passwords but nothing works, that would create BIG frustration. i mean,,, i myself don't have 10 unique passwords. Well, that's what your client asked you to do right? GOOD LUCK!