A snippet for handling SHA-256 password encryption for pfiles has been posted to the download page. This is intended to be a full replacement for the MD5 password encryption system and as a result the MD5 code has been removed from the page. SHA-256 is a much stronger encryption system which, to date, has no known attacks against it that work.
For those license compatibility freaks, this implementaion is licensed under the 2-clause BSD license which is compatible with the Diku/Merc/Smaug/AFKMud licenses. So it is not hampered by any distribution problems if you wish to implement it in your own code.