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I created a new user account and when I try to login to that account by switching accounts it said wrong password. I searched here and found my answer here - Create a new user in 12.04?

Now when I clicked enable this account and I don't know what happened from then.. now I'm with a problem that ubuntu don't recognising my password. It's saying there's no password set but when I'm clicking it it's asking for old password.

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What happens if you leave the current password field blank? – Nate Sep 20 '12 at 14:29
Nothing. That 'Change' button still faded or inactive. – rainlover Sep 20 '12 at 14:31
I guess dropping to a root shell would be overkill.. – SirCharlo Sep 20 '12 at 14:33
@SirCharlo that's what I was going to suggest, too. – Aaron Sep 20 '12 at 14:36
Can't you just sudo passwd <user>? Just asking. – NlightNFotis Sep 20 '12 at 14:41

I would suggest taking NlightNFotis' advice: open a terminal and type

sudo passwd <user>
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Yeah, this way you are super user(root) authorized to change <user>'s password to your liking. There is a problem however if you are not in the sudoer's group and have no account with access to sudo commands. – NlightNFotis Sep 20 '12 at 16:16
I would upvote this, but for some strange kind of fashion, I have reached my daily upvoting limit. – NlightNFotis Sep 20 '12 at 16:17

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