I'm afraid you'll have to invest some money if it is important or find another route. It is a good puzzle to solve if you ever want to develop on openACS.
The "error" you reported is not from the error.log, but from the server.log. You are using an old openacs and aolserver version and root@localhost is not a valid emailadres.
The first problem you encounter when you try to login is that /register/restricted (/packages/acs-subsite/www/register/restricted) cannot be found. Is it there? Are the permissions set correctly? ....the password/email problem comes after that.
I'm going to leave it like this.
