Just looked through that script... it seems to update the password hash in the database but not the salt. Try changing line 39, which looks like:
PHP Code:
$mysidia->db->update("users", array("password" => $password), "uid='{$mysidia->input->get("uid")}'");
To this:
PHP Code:
$mysidia->db->update("users", array("password" => $password, "salt" => $newsalt), "uid='{$mysidia->input->get("uid")}'");
edit: omg didn't realize op posted this a few months ago ok whoops
@NobodysHero I'm not sure about the email thing, though. ;o; Last time I ran Mysidia the password resets were working fine... Does your host have the mail() function enabled? Some hosting providers disable that function.