If DisableSavePassword is enabled (value is set to 1), then no password is saved when a user creates a new DSN in the ODBC Data Source Administrator. The user can still test the connection by clicking Test after providing a Name or IP Address, Username, and Password. If the user clicks OK, then the warning dialog box that prompts the user whether or not to save the password no longer appears, and all information entered except the password is saved in the registry.
For an existing DSN that already had the password saved in the registry, if DisableSavePassword is enabled, then the user can still use the existing password to try to connect to the database (the DSN config window will show the previously saved password as masked) but they cannot save a new password on that DSN. To delete the saved password for an existing DSN, a user must change the existing DSN by modifying the Data Source Name and save it (thus creating a new DSN based on the old one).