I'm not sure what would be causing that. That seems to be a problem with Joomla itself. The SCLogin module's "Reset Password" link simply redirects to Joomla's forgot password feature. From there, SCLogin has no effect on what happens after that.
I'd recommend the following:
* Try with the standard Joomla Login module. If the problem still happens when using that module, it's definitely not related to SCLogin
* Try with SEF URLs disabled. The links you note above don't look exactly right from a quick glance. If you're using some 3rd party extension, it's possible it's creating the wrong links. This won't be a final solution, but if it works with non-SEF URLs, that will help narrow down the problem.
* Try with a built-in Joomla template. Again, this is a temporary test just to narrow things down.
Thanks,
Alex