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The newest Firefox 3.0.3 basically fixes a problem where users were unable to retrieve saved passwords or save new passwords.
Firefox’s Mike Beltzner explains:
* The symptom is that users who have password data stores with non-ASCII data saved as something other than UTF-8 (more common for people who have saved passwords on IDN domains or non en-US domains) will not be able to access their saved passwords or create any new saved passwords. There is no permanent dataloss, the saved data is just inaccessible.