Computer stopped asking for password all the sudden

Hi, i have my iMac 24 late 2006 model set up to ask for password upon waking up from sleep or screen saver, been working fine for the last 3 months but all the sudden today i noticed when i tapped the space bar the screen by passed the password request, how strange, anyone know what i can do about this?
I ran disk utilities, nothing changed
Restarted, nothing changed
Restarted with LEO OSX install DVD and disk utilities, nothing changed
checked the settings in security over and over, nothing changed

new update solved the bug

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