I was having the same problem and did the following and it worked. I haven't seen this posted anywhere else yet so let me know if it works for you guys as well.
First
Code:
nano /etc/ispcp/ispcp.conf
Remove the hash from DATABASE_PASSWORD so the line only reads as
Code:
DATABASE_PASSWORD =
Next you need to put in your current mysql password
Code:
/var/www/ispcp/engine/ispcp-db-passwd
Now for the important part you need to copy the new hash from DATABASE_PASSWORD = newhash
Code:
nano /etc/ispcp/ispcp.conf
Then replace the old hash in this file with the new hash you just copied
Code:
nano /etc/ispcp/ispcp.old.conf
And finally