I just installed Agilo from Agile42 on my Windows 7 machine at work. Trying to create a new user, I got the error message:
“The password file could not be updated. Trac requires read and write access to both the password file and its parent directory.”
To solve this issue, you must find the installation directory, right-click the subdirectory tracenv it, and choose Properties. In the Tab Security click “Edit”. Give “Users” and “Trusted Installer” all Permissions by checking the appropriate checkboxes and Apply the changes. Now your Local Server should be able to edit its own database.