The profile page does not have a redirect so what you are experiencing is as designed. If you would like to add in a redirect to take the customer to a particular page you can update the value for this in the users_Profile.php page at line 88 like this:
$WA_redirectURL = "the page to go to here.php";
As for updating the passwords to be encrypted there are some guides for this on the Security Assist support page under the Solution Recipes area:
securityassist/