01. | Startup Your Mac with an Operating System Disk
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02. | Select A Language? You may or may not be promoted to select a language. If you are, select English and click on the right arrow to continue on to the next screen. |
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Open the Reset Password Utility
The location of the Reset Password utility varies slightly depending on the version of Mac OS X on your installation disk.
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04. | Select Your Hard Drive The Reset Password window asks you to select your hard drive. Your hard drive is probably called "Macintosh HD" unless you renamed it.
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05. | Quit Reset Password & Installer then Restart Your Mac
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06. | Reset Your Keychain After you restart your computer and login with your new password, you need to reset your password keychain. If you change your account's password using your Mac OS X Install disc (or if your network-based account password is changed due to a network admin forcing a password change), your default keychain password does not change. Because of this, you will be prompted to enter a keychain password each time an application requires authentication that your keychain would normally provide. This will drive you nuts!!! The best way around this is to delete the keychain. Don't worry, the OS will automatically make you a new one.
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Source: http://www.methodshop.com/gadgets/tutorials/osxpassword/index.shtml