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Where the network passwords are stored ?

Older versions of Windows (Windows 95,98 and ME) stored the network passwords in pwl files located under the main Windows folder.
Starting from Windows XP, the network passwords are encrypted inside the Credentials file, located under Documents and Settings\<User Name>\Application Data\Microsoft\Credentials\<User SID>. Some passwords may also be stored in the Credentials file under Documents and Settings\<User Name>\Local Settings\Application Data\Microsoft\Credentials\<User SID>.
In addition to the passwords of network shares, Windows XP also stores the passwords of .NET Passport (MSN Messenger) in the same Credentials files

Credentials file in external drive

Starting from version 1.20, you can also read the Credentials from an external profile in your current operating system or from another external drive (For example: from a dead system that cannot boot anymore). In order to use this feature, you must know the last logged-on password used for this profile, because the Credentials file is encrypted with the SHA hash of the log-on password, and without that hash, the Credentials file cannot be decrypted.
You can use this feature from the UI, by selecting the 'Advanced Options' in the File menu, or from command-line, by using /external parameter. The user profile path should be something like "C:\Documents and Settings\admin" in Windows XP/2003 or "C:\users\myuser" in Windows Vista/2008.

License

This utility is released as freeware. You are allowed to freely distribute this utility via floppy disk, CD-ROM, Internet, or in any other way, as long as you don't charge anything for this. If you distribute this utility, you must include all files in the distribution package, without any modification !

Disclaimer

The software is provided "AS IS" without any warranty, either expressed or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. The author will not be liable for any special, incidental, consequential or indirect damages due to loss of data or any other reason.

Using Network Password Recovery

This utility doesn't require any installation process or additional DLLs. In order to start using it, just extract the zip file to any folder you like, and run the executable file - netpass.exe .
When you run this utility, the main window displays all network passwords found on your system. You can select one or more items, and then copy them to the clipboard, or save them to text/HTML/XML file.