Joomla 3.2.0 passwords issue - SOLVED

Joomla 3.2.0 is a result of terrible coding and total irresponsibility: users registration and password reset are broken and passwords are not recognized. Please note that Joomla 3.2.1+ doesn't have these issues.
We suffered from this a couple of days and finally propose a solution, though you can just install Joomla_3.1.6-Stable-Update_Package.zip and downgrade.
Edit /libraries/joomla/user/helper.php:
1. Change
$encrypted = ($salt) ? md5($plaintext . $salt) : md5($plaintext);
to
$encrypted = ($salt) ? md5($plaintext . $salt) . ':' . $salt : md5($plaintext);
Edit /libraries/joomla/user/user.php:
2. Change
$array['password'] = $crypt . ':' . $salt;
to
$array['password'] = $crypt;
Edit /components/com_users/models/reset.php:
3. Change
$password = $crypted . ':' . $salt;
to
$password = $crypted;
4. Change
if (!($crypt == $testcrypt))
to
if (!($user->activation == $testcrypt))
5. Change
$testcrypt = JUserHelper::getCryptedPassword($data['token'], $salt);
to
$testcrypt = JUserHelper::getCryptedPassword($data['token'], $salt, 'md5-hex');
Edit /plugins/authentication/joomla/joomla.php:
6. Change
if ($crypt == $testcrypt)
to
if ($result->password == $testcrypt)

Reset your password if it still doesn't work after these changes.
Reference link http://alterbrains.com/blog/joomla-3-2-passwords-issue-problem-solution