Allows Microsoft Office Communicator to store user passwords. If you enable this policy setting, Microsoft Office Communicator ...

"Allows Microsoft Office Communicator to store user passwords.  If you enable this policy setting, Microsoft Office Communicator can store a password on request from the user.  If you disable this policy setting, Microsoft Office Communicator cannot store a password.  If you do not configure this policy setting and the user logs on to a domain, Microsoft Office Communicator does not store the password. If you do not configure this policy setting and the user does not log on to a domain (for example, if the user logs on to a workgroup), Microsoft Office Communicator can store the password.  Note: You can configure this policy setting under both Computer Configuration and User Configuration, but the policy setting under Computer Configuration takes precedence."