I know I wasnt crazy And yeah I got the same query with "password" = 0 so I'm really baffled why is this happening.
It wont login if there is a password field in the form, so empty or wrong password wont let you in. This happens if you remove the password field from the form. So its a potential security hole when you could for example just send the form from outside without password field.
My setup is Wampserver with PHP5.3, mysql 5. I tested this just by copying fresh CI in c:/Wamp/www/ folder, set the config.php, database.php. Then copied from the latest DMZ datamapper files and finally copied the example application folder.