And for SQL Server 2000 - encrypting/hashing passwords...
Well - no sooner do I post on "SQL Server 2005 Encyption" than someone asks me "and what about SQL Server 2000?". One route is not to store an encrypted password - instead store a hash of the password (Also knows as "one way encryption")
There are a couple of nice articles I would recommend you check out:
- Adding Salt to a hash https://www.obviex.com/samples/hash.aspx
- Using MD5 to encrypt passwords https://aspnet.4guysfromrolla.com/articles/103002-1.aspx