I can confirm this issue in Jaunty (MySQL 5.1.30really5.0.75-0ubuntu8)
** Changed in: mysql-dfsg-5.0 (Ubuntu)
Status: New => Confirmed
** Bug watch added: Debian Bug tracker #513262
http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=513262
** Also affects: mysql-dfsg-5.0 (Debian) via
http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=513262
Importance: Unknown
Status: Unknown
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mysql-server-5.0: Leaves password in debconf database
https://bugs.launchpad.net/bugs/344816
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