The forgot password link is generated by Joomla. The module 'asks' Joomla what the correct link is for index.php?option=com_users&view=reset, and Joomla will return an SEF or non-SEF version and will append the correct Itemid to the URL based on your menu structure.
As noted above, I'd try the Joomla login module to see if the forgot password link there is incorrect as well. That will help narrow things down very quickly.
The other thing to investigate is going into the Menu Manager in Joomla and finding out what menu item is at ID 435.
Now, rereading it, I'm also confused by your first message:
When a user enters their email to reset their password the page just reloads and no password is sent.
So you're saying the link does work and it brings the user to a page that has a reset email field, but that page just doesn't work? Does the page look identical if you take off the &Itemid=435 or are they different looking pages? If they look different, then that seems like some other extension that's at Menu ID 435 has it's own password reset feature that isn't working.
Lots of questions, I know, but hopefully something above helps narrow things down.
Thanks,
Alex