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In BI 3.x while creating the user in BI through CMC we have option of "user cannot change password"

1. When "user cannot change password"  option is checked.

   Here the user name is user1. So a new principal with name "user1" is getting added to this user after migrating to 4.0 SP05 on wards.

   Here for the user "user1" and users he owns cannot change the password as this right is denied for the user and for his descendants.

2. when the "user cannot change password" option is unchecked.

   Here user name is user2. New principal with user2 is getting added to the user after migrating to 4.0 SP05 on wards.

   Here for the user "user2"  and the users he owns can change their password as right is enable for the user and for his descendants.

In both the cases  the principal which is getting added is specific to the user. It will not effect any other users in BI.

Reason for this  new principal is getting added is "user cannot change password" option is getting converted in to rights.

These rights are put under one principal with same as user name. This principal we can see by selecting user security by right click the user.