# This is action in the controller
  #Reset password
  def reset
    @user = User.find_by_reset_code(params[:reset_code])

    if request.post?
      respond_to do |format|
        if @user.update_attributes(params[:user]) #@user.update_attributes(:password => params[:password], :password_confirmation => params[:password_confirmation])
          logger.debug("******** Success")
          self.current_user = @user
          @user.delete_reset_code
          flash[:notice] = "Your password was reset successfully."
          format.html { redirect_to "/login" }
        else
         logger.debug("******** Fail")
         format.html { render :layout => "login_template", :action => "reset" }
        end
      end
    end

   end

#And here is the view
<div id="reset_box">

  <h1>Reset your password</h1>

  <p class="instructions">Type a new password for <%= @user.email %>.</p>

  <%= custom_error_messages_for @user %>

  <% form_for :user do |f| %>

  <p>
    <label for="password">Password</label><br />
    <%= f.password_field :password %>
  </p>

  <p>
    <label for="password">Confirm Password</label><br />
    <%= f.password_field :password_confirmation %>
  </p>

    <p class="reset_submit">
      <%= submit_tag 'Reset', :class => "login_button" %> or <%= link_to "Cancel", "login" %>
    </p>
  <% end %>

  <br clear="all"/>

</div>