Once upon a time it was a modification to the login.ascx but I'd have to take a look at it to see what's changed. There was talk about bringing in the ability to set whether passwords could be retrieved or not in the site settings but I don't know if it was ever implemented. At this point all I can suggest is to turn it back on (if you haven't already) until I can check it out. I'm slammed at work this week but will try to take a look at it this evening.

Sorry John, I just haven't gotten to it. I'm on holidays right now so as soon as I'm done all the items on my wife's "honey-do" list I'll take a look at it.