[dfox]

By the way are there any other security implications of cracking LM hash than recovery of passwords from already compromised machine?

[_b8r0]

LM is a particularly poor algorithm for passwords. There's a fair bit of info here: http://en.wikibooks.org/wiki/Reverse_Engineering/Cracking_Wi...

It's disabled by default on Vista and 7 (AFAIK, it was on my Windows 7 build, and I don't think that was me) but is enabled by default on Windows XP. You can find out how to disable it here: http://support.microsoft.com/kb/299656