It's important that you encrypt your passwords.I use this example because it has happened, more as once.
Why ? Lets say for example that your database is hacked and it holds all the usernames and passwords of your clients. You can't just restore the database, cause the hacker has all the passwords and can access any account.
The easiest way to encrypt your passwords is with md5.
Here is a example for php :$hashedpass is here the encrypted pass, and $pass is the password.
In ASP is no build in function, but you can include a 'home made' function.
You can find some here :
MD5 is a already a older hash function, it's better to migrate to SHA-1. Or better one of the following SHA-224, SHA-256, SHA-384 and SHA-512.
In cooperation with SecurityHome.eu