Do everything that Edward says. It's good advice.

Something else that I do when working with passwords is to add a
second application wide salt to the nonce just to make it yet more
complex. Then once that is hashed I hash it again 5-10 more times.
Just makes it more and more difficult to create any kind of rainbow
table for the application.

Jason Dean has a bunch of articles on Password security and hashing
and code samples for handling it:
http://www.12robots.com/index.cfm/2008/5/18/Password-Security-with-Hashing-Functions--Security-Series-4.2
http://www.12robots.com/index.cfm/2008/5/19/More-on-Hashing-Functions-Security-Series-4.2.1
http://www.12robots.com/index.cfm/2008/5/21/Salting-Passwords-Security-Series-4.3
http://www.12robots.com/index.cfm/2008/5/29/Salting-and-Hashing-Code-Example--Security-Series-44
http://www.12robots.com/index.cfm/2008/6/2/User-Login-with-Salted-and-Hashed-passwords--Security
-Series-45

They are a great place to start reading on the topic.

-Daniel Sellers
www.designfrontier.net

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