From the Digg front-page:  Passclicks is a new way to logon to websites without users having to remember a password or passphrase.  You can set (or reset) your password by clicking on five distinct areas of the image.  Then logon by clicking those same five points with a 7-pixel margin of error.
It is quite clever - but I don't see it replacing the password anytime soon.  I'd forgotten one of my locations immediately after setting my passclick... and thereby failed the test.
My quick take:  user retraining and the passclick reset process will be daunting issues that will hamper adoption...
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