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How to disable IE password caching
Author: Craig "hachiroku" Mercer
Date Created:2002-02-14
Operating System(s):Windows Logo imageWindows 9X/2000/XP

To disable password caching, start the registry editor (Regedt32.exe), and locate and click the following key in the registry:

HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings

On the Edit menu, click Add Value , and then add the following registry value:

Value name: DisablePasswordCaching
Data type: REG_DWORD
Radix: Hexadecimal
Value data: 0x00000001
Quit Registry Editor.

You can also disable password caching by using the Microsoft Internet Explorer Administration Kit (IEAK) to create an executable file, and then attach it as an add-on component. When you use this method, Setup adds the DisablePasswordCaching value to the registry during the installation process.

References:
Microsoft TechNet, Article Q229940

The Usual Disclaimer: Modifying the registry can cause serious problems that may require you to reinstall your operating system. Use the information provided at your own risk.