How to Create and Use a Password Reset Disk in Windows Vista
Forgetting your password can be an extremely frustrating situation, and we've already shared how to reset your password with the Ultimate Boot CD as well as the System Rescue CD, but you can prevent the situation entirely by creating a password reset disk.
The Password Reset Disk is essentially a small file that can be used to reset your password, even if you have changed your password since creating the reset disk. This can be extremely valuable for preventing any embarrassing situations.
Naturally, you should store this in a very safe place, since it can be easily used by anybody to reset the password and gain access to your account.

Of course, Windows has supported the use of a Password Reset Disk for a while, but Windows Vista makes it really simple to use since you can use a USB Flash drive to store the reset file instead of a floppy.
Creating the Password Reset Disk
Open up User Accounts by clicking on your User icon in the start menu, and then select the link for "Create a password reset disk" over on the upper left-hand side.
You'll be greeted with a wizard that gives you basic information about how it works… just click Next.
Now you can select the removable drive to create the password key on:
You'll be asked for your current password, which we'll hope you haven't forgotten.
And that's all there is to it… just remember to save this disk in a safe place.
If you actually look at the drive, you'll see a file named userkey.psw that contains your reset key, and you could backup the file to another location if you wanted to.
Logically, you could then copy this file to another USB drive and use it to reset the password.
Resetting Your Password
Once you have a password reset disk, you can use it easily the next time you forget your password… once you've typed the wrong password Vista will show a "Reset password" link below the login box.
You'll want to make sure you already have the USB flash drive inserted at this point, or else you'll get an error message:

If you do already have the disk inserted, you should get this wizard screen instead.
You'll want to pick the right disk if you have more than one…
And then type in a new password and a hint for the password.
That's all there is to it.
Note that you don't need to create a new password reset disk after using it to change your password.


This is neat, but… OMG! Isn't this a HUGE security risk? Is there any way of stopping this from working? What good is it to lock our computers when we are away from them if some can just reset the PW?
@mjschmidt
That's why you need to put the disk in a safe place, where nobody else can get to it!
mjschmidt,
a person can only do this to your PC if the he/she has YOUR password reset disk. As long as you don`t give it away to strangers, nor leave it in a drawer right below the PC, you should be fine.
@mjschmidt: No, it's not a security risk because it's not posssible for someone who doesn't know your password to create a password reset disk.
I'm assuming that each .psw file is tied to a specific account. You can't reset someone else's password with your .psw file, can you?
@Ron
The .psw file is only going to work for your specific account, and of course you have to enter your password to even create the password reset disk in the first place.
It's really not a security risk.
Can i use other's laptop cd/MMC card for reset my laptop's password?
What Shoud i do for that….I didn't creat any Cd/MMc
@Komal: I don't think so. I would guess the password file is computer and user specific. You can try it if you want to though.
If that doesn't work then you can follow the articles for using a Ultimate Boot CD or System Rescure CD which are linked at the start of this article to reset your password.