I have my 'unique passwords before reuse' setting set to 2. I created a user and forced password change. On the password change dialog I entered the original password and then entered a new password in the new password and confirm new password text boxes. Changed okay. I then forced another password change. This time I tried using the original password. I then received the message indicating the reuse rule, as expected. I then tried to change the password to another value. This time I receive the message 'The New password cannot be confirmed, please try again. It doesn't seem to matter what password I use, I cannot change it. I even clicked cancel and reentered the values and still couldn't enter a new password. (One other problem is you cannot exit out of this form)
I then did the same test on version 1.6. When I tried reusing the original password, I didn't receive the 'reuse' message, nothing happened. However this time I could change the password.
Tim