This was with a fresh saucy install (Nov 23 2013). I added a new user using 
gnome-control-center without setting a password. Then the admin set the 
password for the user, removing the automatic login toggle.
Though, the user remained in the nopasswdlogin group, so it could login without 
any password. No indication of this was shown in gnome-control-center. By 
manually removing the user from that group (deluser xxx nopasswdlogin), the 
issue was resolved for that user.

So this bug report is about not removing the user from the nopasswdlogin
group.

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https://bugs.launchpad.net/bugs/906081

Title:
  Disabling 'Login without a password' does not remove user from the
  nopasswdlogin group

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