so.. i forgot my password (this is what happens if you use different one for everything and trying to keep them in your head), but i have the passphrase, is there any way i can restore my password for encrypted wallet? if not, is there a way how to reinstall the program so i can create a new wallet that is not encrypted?
You can restore the wallet from seed (pass phrase). If you imported addresses from elsewhere they won't be re-generated but the regular seeded ones will be fine. You will lose labels and have to add them again after restoring.
Start by making a backup copy of your wallet in case you remember later and can get into it. Rename the current wallet.dat file so that a new file can be created.
Then run electrum with the restore cmd. ie. "electrum restore". It will ask you questions and re-create your wallet. You will enter the seed but also the other important factor is the "gap count". Probably the default value is correct unless you had some reason to change it last time. It will ask you if you want to encrypt and that's up to you this time. I would recommend it even if you have a password.
I'd highly recommend a solution like KeePassX or PasswordSafe. It lets you have one master password to access an easy database of all your other passwords. Make regular backups of that safe file and you'll never have problems forgetting passwords even if you have hundreds (which I do).
