Possible problems so far:
Password retrieval ingame can have keyboard inverted: when you have to confirm (press [y]es to confirm) try Z if Y isn't working.
Char login:
Most important, first create an account (the fat link in the middle of the login page)
If you cannot select a char after that, try one of the following, or best, all at once:
delete cookies from c-rpg.net,
delete cache,
restart browser,
use
www.c-rpg.net if you used c-rpg.net, and use c-rpg.net if you used
www.c-rpg.net