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Well, if you've ever tried to login to a website and you have IE (or whatever browser you use) set to store your passwords, and you've accidentally typed it wrong - you'll know from experience you can go to that same site and the incorrect information will indeed often be available for your use even though you know it's wrong. So it's stored somewhere...
It is possible to have some traces of a login attempt never actually completed that remain on a machine if someone doesn't take the time to get rid of it. I have personally cleaned out incorrectly stored passwords where I had forgotten my login and tried all kinds of things to get into sites. I routinely clean cookies and temp files so I can't say that I've ever looked there.
I wish you the best of luck with this. I'm afraid I doubt I have anything else I can add that would be of help. People will ultimately draw their own conclusions from any evidence found, or from whatever evidence is presented (regardless of what's there to back it up.) It sounds like a very difficult situation for those involved.
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