This bug was fixed in the package gnome-keyring -
2.92.92.is.2.30.0-0ubuntu3

---------------
gnome-keyring (2.92.92.is.2.30.0-0ubuntu3) lucid; urgency=low

  * Drop 04_clean_session_keyring.patch: This was a cleanup for users who
    installed Lucid Alpha versions and persisted until after Beta-2 and RC. No
    need to keep this extra code for the final release.
  * Add 04_dont_save_login_password.patch: Disable writing the login password
    into the "login" keyring as "Unlock password for: User Keys". It was never
    meant to be there in the first place (it just was an inadvertent side
    effect of the code reorganization in 2.29), and a freely accessible
    cleartext password for each application once the keyring is unlocked
    creates a root escalation path through sudo. Also, remove that particular
    key entry on upgrades. (LP: #566046)
 -- Martin Pitt <[email protected]>   Thu, 22 Apr 2010 09:15:53 +0200

** Changed in: gnome-keyring (Ubuntu Lucid)
       Status: Fix Committed => Fix Released

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the login password is stored in the user's keyring
https://bugs.launchpad.net/bugs/566046
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