No do not get asked for a password.
Brand new install, clean from OEM 10.6.3 disk, patched to OS X 10.6.8.
No restores from TM, machine is being setup clean from all my OEM discs.
At this point I'm strongly leaning to the scratch on my OEM PE6 disc as having to do something
with Setup not working.
I know I made a backup of the disc somewhere that should be clean I'm going to go look for that
today ( I have like 7 big binders of discs) and then try that.
