Why do you think the cookies are being set? What do you think is in them? Did you check by asking your Web browser to report the cookie setting attempt? (Netscape 6 is very good for this; you can look at all the cookies that have been set for any domain.)
Try this, which reflects how you are passing the arguments to setcookie:
print '$HTTP_POST_VARS[password]';
It will print the literal string:
$HTTP_POST_VARS[password]
... and not the value of the password variable.
What you should be setting as a cookie is
setcookie("Password", $HTTP_POST_VARS['password'], time()+3200);