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That busy cursor was solved in spacewalk in commit 3b2f68112dc95726c98d1a24484972bce1bd1e67
But the problem happen when you enter short password (e.g. 2 chars) and unhandled exception happen.
This exception is raised when you by reserve_user where we think we may want to create new user and check password policy. This should not be done for already existing user/password.
Will file for that separate BZ.
An advisory has been issued which should help the problem
described in this bug report. This report is therefore being
closed with a resolution of ERRATA. For more information
on therefore solution and/or where to find the updated files,
please follow the link below. You may reopen this bug report
if the solution does not work for you.
http://rhn.redhat.com/errata/RHBA-2011-0565.html