I think I found the problem.
Go to the admin.smf.class.php file in the administrator/components/com_smf/ directory and change line 1178 from
to

if you get a error about id and not being a column change line 1196 from
to

hope that helps.

Cool, thanks it worked like a charm but theres still a little problem, when a user changes their password VIA CB or using the forgot password link it does NOT sync their password into SMF forums and they get that error message saying invalid username and or password but then it refreshes and lets them in the site. Its just not changing their password in SMF for some reason any fix for this?

hmm well i had to reinstall my site from scratch and im using Joomla 1.0.13
com_smf 2.0.2.1
Smf 1.1.4

This little code changed worked perfectly for me last time then i was able to upgrade from com_smf 2.0.2 to the 2.0.2.1 bugfix version and that solved my password sync errors as well. Now this time around after changing the above code i dont get the dialog error box anymore but it still says Password Reset Failed! on my page no error messages or anything. Anyone have a clue as to why it would all of a sudden fail?