Try it this way:
<s:Form>
<s:layout>
<s:FormLayout gap="-12" />
</s:layout>
<s:FormItem label="Password" >
<s:TextInput id="password1" width="180" height="25"
displayAsPassword="true"
prompt="new password"/>
</s:FormItem>
<s:FormItem label="Reset" >
<s:TextInput id="password2" width="180" height="25"
prompt="repeat password"
displayAsPassword="true"/>
</s:FormItem>
</s:Form>
HTH,
Olaf
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