This should be fixed in Karmic now. Please reopen if it's not the case.
Jari: your problem is different than the one we're tackling here. If you
still experience it, please report it separately.
** Changed in: gnome-system-tools (Ubuntu)
Status: Triaged => Fix Released
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[Hardy] users-admin appears to allow unauthorized password changes
https://bugs.launchpad.net/bugs/185783
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