I have verified that the Username, password and salt are the same in both databases.
I looked at the includes/setup_options_inc.aps I have not changed because my passwords where already encrypted.
After some investigation in the I believe there something has changed in the login form or register.asp functions.
I edited the functionshash1way.asp file so I would have a constant salt value.
I went to my old system and updated the password of two accounts to make sure they generated the same encrypted password. Check.
I went to the new system change the functionshash1way.asp file to have a constant salt value.
I went in the new system and ATTEMPTED to update the passwords of two accounts to make sure they generated the same encrypted password. Check.
Another thing I did notice. Passwords in the 7.x system are NOT case sensitive. Passwords in the 10.x system ARE case sensitive. Maybe this is why the encrypted passwords are not validating until you reset them.
Based on your comments of the code not changing in the functionshash1way.asp file. I verified this via a diff function. And my above observations, I don't know where else to investigate.
We would like to upgrade to this version, but this issue is a show stopper for us. I don't want my users to have to request a new password to login after we upgrade. I hope I have provided you with enough information to see if you can fix this problem in a future release. Until then I don't think we can upgrade at this time.