I have had to register a new account as the password reset system, was just telling me to correct the highlighted error (nothing was highlighted). I used a mixture of letters and numbers.
I had the same problem. Got a password reset email (needed after the recent system update) and the setting of a new password was rejected, as above. After no useful response from PN support I eventually found a mention on the forum that the reset seemed not to work under some versions of Firefox. That seems to have been it. I switched to another machine running an earlier version of FF and the reset was possible.
