[talipse]

When I take a backup do I need to remember the password also?

No, you are not prompted for an old password when you are reloading from a previous backup. It will only prompt you for your current password on your BB.

If not - then is it not a security breach considering the fact that the backup CD might be stolen and somebody else can load my personal data on their Blackberry.

Some companies do consider this a security breach, and thus push down the appropriate IT policy to prevent users from running a Desktop Backup of their handheld.

Nice try, but there are no security breaches in the BlackBerry Solution, that can not be eliminated.