http://www.zdnet.com/blog/security/appl ... text/11963It seems an Apple Dev left a debug option switched on, which stores passwords in Lion 10.7.3 in the clear - for machines upgraded from Snow Leopard at least.
The problem was logged on the official Apple Support forums about 3 months ago, but so far Apple haven't addressed the problem.
Probably not a major problem for single-user Mac owners who don't take their Macs with them, but could be a problem in companies or families, where people share devices or if a device is stolen.
Edit: This also affects TimeMachine backups - even though they would normally require a password for the encrypted files, the clear text password is stored in the TM log file!