Picture Passwords are one of the more innovative new features in Windows 8 that enables you to logon by touching or clicking specific parts of a picture to authenticate.  Any picture in your library can be used as a reference to help you remember where the three parts of your picture password are located. Basic gestures such as dragging your finger or mouse along a specific part of the picture can also be used in your password.

After you log in click or touch the metro Control Panel tile.

Select Users and then Create a picture password.

Enter your current password and hit OK.

Hit Choose picture.

Select the picture you want to use as the background for your reference points and hit Open.

Confirm the picture selection with Use this picture.

Touch and swipe or click and drag in three points on the picture.

Repeat the points you selected to confirm your password.

Your picture password is now set, hit OK.

The next time you logon to Windows, you will see your picture password background image.  Touch and swipe or click and drag on three points in the picture you setup and you will be logged in.