ok Thanks a ton. I now have this working ... everything is encrypted.
2 more quick questions.
1. I have full access to the db, phpmyadmin, etc... how can I go about encrypting each password by hand, then inserting it into the db? ...as you mention in your answer above. Is there a tool for this?
2. Now that I have set the encryption within my reg page... was there an asset created in a WA_ folder that is required to be uploaded along with the edited registration page? .I checked and did not see anything out of the norm.