The phone call resolved that problem but there is another now. The solution was to manually insert that session first and then undo.
Directions if anyone needs it:
Go to user_EmailPW.php > bindings > Security Assist > Random Password > click on the tiny insert button on the bottom right of the binding window > now undo it by going to edit toolbar on top of DW > undo > now go back to follow the tutorial video again, for some reason Dreamweaver needed to be refreshed or something.
However, after completing the tutorial, I tried to open user_emailPW.php locally and I get this error
Warning: require_once(../WA_SecurityAssist/WA_RandomPassword.php) [function.require-once]: failed to open stream: No such file or directory
I checked and there is no WA_RandomPassword.php under the SA folder.
So was it supposed to be created?