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It's possible.... but it isn't easy.... I've been able to sucessfully implement it in my site:
http://www.developerkb.com .... but it came at a price.... because I had to modify some core files, and add a new one.... I'm perpatually stuck in a slightly older version of XOOPS and have not been able to upgrade to the latest like I want to.
A total of 4 files were harmed in the process.
Essentially, it involved the login process to check for the "Remember Me" flag and setting a cookie. Then I had to check for that cookie any time the user hit ANY page on the site (so if they are following a link from email or typed it right in they get auto logged in)..... After some sleepless nights, I discovered that I had to separate this from the original checklogin page, and do some smoke and mirrors to get it to refresh properly (while keeping it transparent to the user)
Then there was an issue with the user's changing their password and the cookie not getting updated.....
I think the XOOPS Core people are going to (hopefully) better implement this in future version.
TG