Sounds like long long ago, when you were first asked whether or not you wanted to use Keychain to remember passwords on your system, you said no, and that setting has carried over since then.
I'm more of a hardware guy, so I couldn't find the place where you change that after a minute or two of looking, but someone else will probably know. Or you could just google it yourself.
I hope to upgrade to Lion soon. I have been having an annoying problem
with Snow Leopard and Leopard. I'm pretty sure it happened when I first set up my iMac and has continued with each upgrade. I am a sole user of the computer. I have to sign in with password when I get on, which is no problem, but have to sign in with each Application I use. When I click "get mail" have to sign in each time, use Safari, have to sign in with password etc. before I upgrade to Lion, is there any way to insure that I don't have to use my password for everything I do. I hope someone can help.