After hours of messing around with RegEdit + Yahoo Messenger + Microsoft’s Virtual PC I’ve found the problem and a solution to why apps like Msn Messenger suddenly can’t remember their passwords anymore.
When Yahoo toolbar gets installed it sets the following registry value:
[HKEY_USERS\S-1-5-21-796845957-926492609-725345543-1003\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]
AppData = %AppData%
The problem here is AppData should actually be the following
AppData = %USERPROFILE%\Application Data
So when MSN or other apps that use that registry key go to save their data it gets lost.
So the solution is simple, run regedit and go to
[HKEY_USERS\S-1-5-21-796845957-926492609-725345543-1003\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]
and set the value AppData to a data value of %USERPROFILE%\Application Data
Tools-->Internet Options-->Privacy tab--> move slider all the way down to "Accept All Cookies"
If it's already set that way, then please try downloading Mozilla Firefox and try saving passwords for sites in that browser. That way we can find out if the issue is with your browser or with your OS.
Will dropping to Allow All cause security risks?
Cookies do not act maliciously on computer systems. They are merely text files that can be deleted at any time - they are not plug ins nor are they programs. Cookies cannot be used to spread viruses and they cannot access your hard drive. This does not mean that cookies are not relevant to a user's privacy and anonymity on the Internet. Cookies cannot read your hard drive to find out information about you; however, any personal information that you give to a Web site, including credit card information, will most likely be stored in a cookie unless you have turned off the cookie feature in your browser. In only this way are cookies a threat to privacy. The cookie will only contain information that you freely provide to a Web site.