Something's Wrong With My AppleScript

This little bit of code compiles and works on some 10.4.8 Macs running AppleScript 1.10.7:

display dialog "Password:" default answer "" with hidden answer

But on other 10.4.8 Macs running AppleScript 1.10.7, including my primary one at work, I get:

Syntax Error

Expected “into”, variable name, class name, other
parameter name or property but found application
constant or consideration.

[[OK]]

…with the word “hidden” highlighted.

So I think I have to “reinstall” AppleScript or something. I updated XCode, which I thought might “update” my AppleScript, but I keep getting the same message. What do I do?

Model: 1.6 GHz PowerPC G5
AppleScript: 1.10.7
Browser: Firefox 2.0.0.1
Operating System: Mac OS X (10.4)

I think it depends on the type of machine. On my G5, AS 1.10.7 runs your script perfectly substituting bullets for the entered characters. I think 1.10.8 is required for Intel machines. AppleScript is actually not part of XCode - it’s part of a normal system installation.