> I think he refers to the client side (the browser) encrypting the password, 
> shipping that through to the server, and the server decrypting it.

It's hard to imagine what additional security that would provide in
addition to SSL/TLS transport security that encrypts the entire form
payload including the password. The security characteristics are the
same: the client has access to the cleartext password and the server
has access to the decryption key to decrypt the ciphertext. You add
some new problems like browser support for encryption and symmetric
key exchange/management. I would strongly advise against it.

M

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