A security update (2003-07-23) is now available to users of Mac OS X Server:
There have been reports of a Mac OS X Client version of this update was briefly released into Software Update -- and then pulled for unknown reasons.
Security Update 2003-07-23 improves the security of your system by assigning a "disabled" password to a new account created by Workgroup Manager until that account has been saved for the first time. This ensures the new account cannot be accessed by an unauthorized individual.
There have been reports of a Mac OS X Client version of this update was briefly released into Software Update -- and then pulled for unknown reasons.