If I check "Remember Me", and then log out, my login and password are not remembered. I've tested this on many WordPress sites running WP 3.2.1 on a server here in NZ and also on a completely different server hosted in the US. It doesn't appear to be a problem with just my browser, as quite a few people have tested this for me. Although I have tried clearing all cookies, cache etc.
It does however work locally with a MAMP setup on OS X. Is there something I need to install on the server to get this working? I presume it's using session cookies? Any ideas?