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And as long as Apache (or webserver in general) is configured to never echo php files when php is disabled for some reason. You can move php files containing sensitive data out of servers document root. That's much better solution than encrypting source.

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You should always encrypt user passwords with MD5 (a one way hash). This ensures that no one will ever see the clear text password. Although it cannot be reversed, which is a good thing, it protects the user's password. Even if it is echo'd out, it would not do anyone any good.

 

That and I would hope user information is kept in a database such as MySQL.

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