"Password must be saved on login screen for command line actions." (4273087)

Toad for Oracle was running fine, until the "Save Password" option was unckecked from the TOAD login screen.
Here are the steps:

1) Go to Database | New Connection to view the list of connections.
2) For each of them, uncheck the "Save Password" box and delete the password, then close the window.
3) Exit Toad
4) Restart Toad. Now it cannot automatically connect to DB since passwords are erased.
5) Run the DOS batch file to launch the application:
The DOS batch file format was misleading because it includes a password
" -c user/password@DB_instance ", even unchecking Save Password box from the TOAD login screen, the application can still run. After rerunning the batch file, there is an error message message from Utilities | AppDesigner | Execution Log

04/05/2009 19:00:34: Details Tab (Export Dataset) started.
Password must be saved on login screen for command line actions.
Database connection failure
04/05/2009 19:00:34: ERROR: Operation aborted

The next step was trying to put back the passwords for the connections:

6) Go to Database | New Connection to view the list of connections.
7) For each of them, check the "Save Password" box and enter the password, then close the window.
8) Exit Toad
9) Restart Toad. Now it can automatically connect to DB
10) Run the DOS batch file to launch the application
11) Same error message as step 5:

04/05/2009 19:00:34: Details Tab (Export Dataset) started.
Password must be saved on login screen for command line actions.
Database connection failure
04/05/2009 19:00:34: ERROR: Operation aborted