diff -Nur e-smith-base-5.8.0.old/root/etc/e-smith/events/actions/init-passwords e-smith-base-5.8.0/root/etc/e-smith/events/actions/init-passwords
--- e-smith-base-5.8.0.old/root/etc/e-smith/events/actions/init-passwords	2008-03-26 12:49:00.000000000 -0400
+++ e-smith-base-5.8.0/root/etc/e-smith/events/actions/init-passwords	2016-04-13 12:02:50.381000000 -0400
@@ -24,6 +24,10 @@
 
 use strict;
 use Errno;
+use esmith::ConfigDB;
+
+my $c = esmith::ConfigDB->open or die "Could not open accounts db";
+my $PasswordSet = $c->get('PasswordSet');
 
 #------------------------------------------------------------
 # Lock passwords for administrative accounts.
@@ -36,4 +40,6 @@
 system("/usr/bin/smbpasswd", "-a", "-d", "-s", "admin") and
     warn("Could not lock admin account");
 
+$PasswordSet->set_value('no') or warn("Could not set PasswordSet to no");
+
 exit (0);