Hi Jackie,
I have the exact same problem with my 2210, and from all the trawls of the net Ive done it looks like its just you and me with the issue
Just to make sure it is the same thing -
Without the password enabled the system runs fine.
With the password enabled when the ipaq is reset it sits at the password screen - incorrect passwords give a screen nudge and the standard error. Correct passwords freeze the machine after the input of the last character.
I have just run a hard reset on my ipaq and then put the password facility back on (first thing I did)- the password facility works fine. When I then do a restore and choose to enable passwords again the system starts freezing again.
Its my conclusion that it must be something to do with a piece of software I/we have loaded.
We can compare?
post back if you are interested and Ill list all my software
Cheers
Adam