This Help article applies to SharePoint Workspace users whose accounts are hosted via Microsoft servers and not managed on a corporate domain. Typically, these are users who create their own accounts.
The account recovery option is enabled by default at account creation time. You may need to use the account recovery feature under the following circumstances:
You want to restore your account by opening an account backup file, but you have forgotten the password you set when you created the backup.
For security purposes, SharePoint Workspace prompts you to set a log-in password when you create an account backup file. When you open the account backup file to restore the account, you are prompted to enter this password. If you had "Enable account recovery" enabled in your account preferences, A "Forgot your password?" link displays in the password dialog box. If you click the link, an account reset code is sent to your e-mail address. You can use the account reset code in the Account Configuration Wizard to restore your account.
The Windows log-in on your system has been changed in a way that is not recognized by your SharePoint Workspace account.
Though this is a highly unusual circumstance, it also presents a serious issue if this is the only system on which you have your SharePoint Workspace account. In this case, if you have not enabled account recovery, you will be unable to recover your account. The only recourse is to create an entirely new account and then ask your contacts to re-invite you to your workspaces. You will be unable to recover workspaces in which you were the only member.
To enable account recovery:
On the File tab, click Info, click Manage Account, and then click Account Preferences.
Click the Account tab.
Check Enable account recovery and click OK.