Most websites receive the passwords used as plain text then hash them for storage in the databse. Unless the server is running on SSL there is no encryption client side. This would have more implications for OpenSSL and the like, but I'm pretty sure they're already up to snuff on this or beyond it.
http://www.openssl.org/SMF uses the MD5 hash on passwords for storage in the db. But the password is sent in plain text anyway, run a sniffer on our network and you could pick up all the passwords. Pretty sure no one cares that much though. I suppose I could implement SSL and make Dynaverse.net a secure site, but I'm not sure the server will handle the load of encrypting and decrytping all transmissions - it might though, I'd have to try it and see...
http://www.php.net/manual/en/security.database.storage.phphttp://www.php.net/manual/en/ref.mhash.phpPHP is capable of SHA256 encryption.
MySQL 4.1.0 uses a 45 byte password hash,
http://dev.mysql.com/doc/mysql/en/password-hashing.htmlBut unless you are connecting over SSL or another secured connection this does not really make any differnce.
This probably affects things like password protected word documents and the like the most.
Not much implications for php-mysql applications, SSL is where the security is for web applications, pretty much separate from php and MySQL, though the support is there:
http://www.php.net/manual/en/ref.ssh2.phphttp://www.php.net/opensslhttp://dev.mysql.com/doc/mysql/en/secure-connections.htmlNot really a concern for your average php-mysql gaming forum.