I know this is a Perl site but I'm going to give a Java answer that I just found.
I recently found a Javascript password utility on javascript.internet.com. It has an admin page where you can input passwords and users as well as pages that info will redirect them to. You press a button to produce the necessary code and it automatically encrypts the password and page redirect name. If nothing else, you can look at it and try to figure out how it does the encryption and then reads the inputed version and matches it to the encrypted version.
Like I said, a Java solution but it might help make your ethical question moot. She-wolf "Wha? I don't get it."