Allow OpenID registration, and get out of the business of storing passwords. It’s more convenient for users, too.
This process isn’t totally ready for prime-time, but I can confirm it works on Wordpress 2.3.
All you need to do is download the wpopenid plugin, and install the phpopenid library. I put the Auth folder in wp-content, but you could put it anywhere and include that directory in your php path.
Go activate the plug-in and set the options. You’ll get some complaints about the database, because of the change in 2.3 databases, but it should still work.
You can try it out here.
[...] by Doing …and trying, and failing, and trying again. Are you worried about a hacker stealing the logon details of people who have registered at your site… [...]