When I try to change a user password with linuxconf the program halts after the confirmation of it. At this time the only way to exit linuxconf is to destroy it. Nevertheless the user password is updated. I have found out a similar problem with the 'change root password' utility but the program halts before the confirmation and the password is not updated.
I too had simillar problem after installing Redhat Linux 6.2 on DELL Power Edge Server 1300
This appears to be working correctly when checked against the latest build.