Webconfig

<membership defaultProvider="xxxxSqlMembershipProvider" userIsOnlineTimeWindow="15">
      <providers>
        <clear/>
        <add name="xxxxSqlMembershipProvider"
             type="System.Web.Security.SqlMembershipProvider"
             connectionStringName="xxxx"
             applicationName="/xxxx"
             enablePasswordRetrieval="false"
             enablePasswordReset="true"
             requiresQuestionAndAnswer="true"
             requiresUniqueEmail="true"
             passwordFormat="Encrypted"
             minRequiredNonalphanumericCharacters="0"
             minRequiredPasswordLength="5"
             maxInvalidPasswordAttempts="10"
             passwordAttemptWindow="10"/>
      </providers>
    </membership>

<asp:PasswordRecovery ID="PasswordRecovery1" runat="server" MembershipProvider="xxxxSqlMembershipProvider"
                MailDefinition-Subject="xxxx password recovery" MailDefinition-From="donotreplay@xxxx.com"
                MailDefinition-BodyFileName="~/templates/passwordrecover.txt"
                
                OnSendMailError="SendingMailError"
                OnUserLookupError="UserLookupError"
                OnVerifyingUser="VerifyEmail"
                EnableViewState="true"
                QuestionFailureText="Incorrect question answer, please try again.">
                <SuccessTemplate>
                <div class="passwordSentMsg">
                Password sent succesfully. Please check email and try to sign up with given credentials.
                </div>
                </SuccessTemplate>
                <UserNameTemplate>
                    <div class="vertical">
                        <label for="UserName">
                            Enter Your Email Address:</label>
                        <div class="formrow">
                            <asp:TextBox ID="UserName" runat="server" CssClass="styledinput"
                            Width="400" ValidationGroup="RetereivalPassword"
                            AutoCompleteType="Email"></asp:TextBox>
                            <asp:RequiredFieldValidator runat="server" ID="EmailValidator"
                            ErrorMessage="Email is required"
                            ControlToValidate="UserName"
                            ValidationGroup="RetereivalPassword">&nbsp;*</asp:RequiredFieldValidator>
                        </div>
                    </div>
                    <div class="formrow">
                        <asp:Button runat="server" ID="btnRetreiveEmail" CommandName="Submit"
                        Text="Retreive Password" OnClick="RetereivePassword" ValidationGroup="RetereivalPassword" />
                    </div>
                </UserNameTemplate>
                <QuestionTemplate>
                    <div class="vertical">
                        <label>Question:</label>
                        <div style="padding:0px; height:auto;">
                        <asp:Label ID="Question" runat="server"></asp:Label>
                        </div>
                        <div style="padding:0px; height:auto;">
                        <label for="Answer">Answer:</label>
                        </div>
                        <div>
                            <asp:TextBox ID="Answer" runat="server" CssClass="styledinput"
                            Width="400" ValidationGroup="RetereivalPassword"></asp:TextBox>
                        </div>
                        <div class="passwordRetrievalInstrunctions">
                        System will generate new random password. Password can be changed at profile page.
                        </div>
                    </div>
                    <div style="padding:0px; height:auto;">
                        <asp:Button runat="server" CommandName="Submit"
                        Text="Retrieve password" ValidationGroup="RetereivalPassword" />
                    </div>
                </QuestionTemplate>
            </asp:PasswordRecovery>

 and code:

protected void RetereivePassword(object sender, EventArgs e)
        {
           
        }
        protected void VerifyEmail(object sender,System.Web.UI.WebControls.LoginCancelEventArgs e)
        {
            PasswordRecovery ctrl = (PasswordRecovery) sender;
            var users = System.Web.Security.Membership.FindUsersByEmail(((TextBox)ctrl.Controls[0].FindControl("UserName")).Text);
            if (users.Count>0)
            {

                var enumerator = users.GetEnumerator();
                enumerator.MoveNext();
                System.Web.Security.MembershipUser user = (System.Web.Security.MembershipUser)enumerator.Current;
                ctrl.UserName = user.UserName;
                e.Cancel = false;
            }
            else
            {
                //email doesn't exist
                ErrorMsg.Visible = true;
                errorlabel.InnerHtml = "Emai doesn't exist";
                directions.InnerHtml = "Please try again, providing correct email address";
                e.Cancel = true;
            }
        }
        protected void SendingMailError(object sender, EventArgs e)
        {
            PasswordSendingError.Visible = true;
        }
        protected void UserLookupError(object sender, EventArgs e)
        {
            //user lookup error! something went wrong or system is unable to connect to database..
            FetchingUserError.Visible = true;
        }

And this doesn't throw any error. and it doesn't work! (it was working before, but now it doesn't! Why, because of validators?=?

 And yes.. i forgot to tell.. when i put debugger on, in verify email, e.Cancel gets fasle! user is found, then i set username as real username since i am finding users by email and not by username (this was working before). Method finishes and still nothing happens!? It will render UserNameTemplate again and not QuestionTemplate.

 Ah.. sorry. i know. my problem was that it was locked out. So when account is locked out there is no way to use question answer to reterive. Anway.. now i know! I guess this can be pretty much confusing..