All of the names and passwords are converted by PHP into MD5 hash before they are printed to the page to be read by Flash. During the login process, Flash will then take the values entered into the login fileds, MD5 hash them, and compare the two hashed values to validate a successful login. This adds a level of security to the login process, as a person who looks at the page through browser watching software such as Charles of Firebug will only see the hashed values instead of the actual login information.

While this adds some security to the login process, this should not be considered foolproof and you should still take all of the standard precautions, such as choosing passwords that can not easily be figured out, and which use a combination of numbers as well as lowercase and uppercase letters.