So after working out all of my other problems I think I came across a bug.
If you forget your password and request the activation key, when you plug in the activation key and your new password, then click the activation button I get the following fatal error:
Fatal error: Call to a member function invokeEvent() on a non-object in /home/user/location/to/assets/snippets/webloginpe/webloginpe.class.php on line 3054
It turns out that it does indeed update the password, but you get this ugly white screen with an error.
Any anyone else experienced this?