Index: includes/form.inc
===================================================================
--- includes/form.inc	(revision 960)
+++ includes/form.inc	(working copy)
@@ -1675,8 +1675,8 @@
  */
 function password_confirm_validate($element, &$element_state) {
   $pass1 = trim($element['pass1']['#value']);
-  if (!empty($pass1)) {
-    $pass2 = trim($element['pass2']['#value']);
+  $pass2 = trim($element['pass2']['#value']);
+  if (!empty($pass1) || !empty($pass2)) {
     if (strcmp($pass1, $pass2)) {
       form_error($element, t('The specified passwords do not match.'));
     }