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The permission problem should be resolved now for saving password.
There is no "lost password" function on the website right now, so if you lose you password, you can request that it be reset by using the contact page, and you're new password will be emailed to the email address in you user account.
A forgot password link has now been added through the login page. It will send an email to the address matched that provides the ability to reset the password.
Some outgoing emails have been blocked by spam filters (probably because reverse DNS isn't set up on the domain right now). To get around this until the problem is really solved, a gmail account will be used to send outgoing emails. It should take care of the problem.