Encrypting Passwords (Insert Records/Authenticate)

That worked. I see Encryption hashed on there. So, my next issue is that since this is a live site, there are already passwords in the database saved with out being hashed. Do I have to convert them somehow for the system to be able to authenticate these now before I change the Insert record and authenticate code to use the Encrypt: hash format?

Do I just run this on the database:

update nameoftable set password=sha1(password) where 1;

Also when selecting that format should the binding code be different then this? This is what I get.

$UpdateQuery->bindColumn("password", "s", "".((isset($_POST["password"]))?$_POST["password"]:"") ."", "WA_IGNORE");