Can anyone tell me if there is a way of making IE8 remember passwords? I have tried tools/internet options/privacy /advanced/override automatic cookie handling...That does nothing to fix the problem.

Go to Tools/Internet Options/Contents tab
Under AutoComplete select: Settings Button
Is the: User names and passwords on Forms ticked

I personally think allowing your browser to store your passwords, regardless the browser used, is a bad, bad idea. Simple tools are readily available that allow you, or the badguy who steals your computer, to easily view all your saved passwords and user names stored by your browser.

You should use a password safe program instead. If you are tired of constantly re-entering your credentials, then you can change how your cookies are managed. If you use CCleaner to keep the clutter down, for example, you can tell it to keep the cookies for the sites you visit often.

If you use a PDA, I highly recommend SplashID Password Manager. This program comes in two parts, one for your computer, and one for your PDA device. You can enter, edit, or delete passwords on either one, then "hot-sync" the PDA to your computer, updating both ends. The passwords remain encrypted and cannot be viewed unless the master password is entered. I prefer SplashID because I always have a current, and secure, backup of all my passwords, credit card information, bank accounts, etc. If I am on the road without my computer, I still have all my passwords, and I only have to remember the master combination to open the safe.

Three popular PC only safes are:
Password Safe
KeePass Password Safe
RoboForm

I personally use GBSoft MultiPass

Found here: GBSoft - Multipass : the ultimate passwords manager !

Although I don't mind stored passwords for some web sites such as news web pages.
To allow quick access.
I never allow passwords to be kept on really important sites

Jim