in this case,, they where applying SHA1 encryption to the value of the password form.
they where selecting the password form field, in the property inspector, they where clicking the lightning bolt next to initial value, selecting the password form element dynamic data binding and applying the SHA1 encryption format.
To apply SHA1 encryption to the registration page, you will need to replace the Dreamweaver Insert Record behavior with the DataAssist insert record behavior.
In the DataAssist insert record behavior, you will need to re bind each of the registration form elements with the corresponding Table columns, when binding the password element to the password column, make sure to select the SHA1 format.
A step by step walk through can be found in the Solution Recipe section of the Security Assist support page in the Introduction to SecurityAssist -> Modifying Registration tutorial.