I fixed this myself in RH 5.0.. and now again in 6.0.. maybe you can fix it
for 7.0.. Anyway.. here is a fixed one...
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#!/usr/bin/expect -f
# wrapper to make passwd(1) be non-interactive
# username is passed as 1st arg, passwd as 2nd

set force_conservative 1
set password [lindex $argv 1]
spawn passwd [lindex $argv 0]
sleep .1
expect "password:"
sleep .1
send "$password\r"
sleep .1
expect "password:"
sleep .1
send "$password\r"
sleep .1
expect eof