FYI I just tried adding a Google Talk account and logging in. Didn't show my password.
Edit: so to sum it up that's PR1.1 flashed, never taken a backup, no passwords showing in accounts.cfg for MSN, ICQ or Google Talk, though I've never been online with ICQ.
I have backed up (non protected), and neither my Ovi nor my Skype password are in the file. I've also had to restore from backup, and the Skype account wasn't recreated afterwards - I don't think the Ovi one was either, but I can't be sure.
FWIW, unless you type in a passphrase upon startup of your device, there's no sane way to have encrypted passwords. The usual 'encrypted' passwords people see are usually a static passphrase and about as secure as a broken padlock. Yes, there's unencrypted passwords in gconf and other places. If they were to be truely encrypted we would need the TPM from Maemo6 devices. They have to be unencrypted as you would need to unlock it for the application each time it uses it.
also I've noticed that the autocomplete function caches my passwords too. Yesterday a frend of mine was composing an email with my N900 and the device suggested my passwords to him. Grr
ive updated my firmware and it is still happening. just checked.
Of course it will as your dictionary file does not get overwritten. I don't think you want to start teaching the N900 from scratch?
You have to remove that string from the dictionary first...