I have the same problem, except mine is the other way around.
I upgraded to 10.8.2 from 10.6.8, and I have never used the "require password" option. But now it appears to be suddenly enabled - and I can't disable it or adjust the time interval.
My box is also greyed out like shown in a previous post, even though I have an admin account.
I don't know if it's related, but when I upgraded I also noticed that my admin account was suddenly "managed", like parental controls were activited - even though this shouldn't even be possible with an admin account.
In order to deactivate it I had to create a temporary admin account and disable it from there.
Incidently, with the new temporary admin account I have no problem turning the "require password" option on or off. But no luck with my actual account.
Really really annoying! 😟