SQL Server Management Studio 2008 delete the file C:\Users\%username%\AppData\Roaming\Microsoft\Microsoft SQL Server\100\Tools\Shell\SqlStudio.bin
SQL Server Management Studio 2005 delete the file – same as above answer but the Vista path.C:\Users\%username%\AppData\Roaming \Microsoft\Microsoft SQL Server\90\Tools\Shell\mru.dat
These are profile paths for Vista.
From http://stackoverflow.com/questions/349668/removing-the-remembered-login-and-password-list-in-sql-management-studio by Robin Luiten