Here is what i my attempt to do the same thing through a cgi perl script using the Digest::MD5 module

open FILE, ">>$ENV{'DOCUMENT_ROOT'}/some_path/some_other_path/some_pas
+s_file" or die $!;

   print FILE "webmaster:Δημιουρ&#9
+47;ία Βάσης Δεδ&#95
+9;μένων!:"          .Digest::MD5::md5_hex("a
+dmin:Δημιουργία &#9
+14;άσης Δεδομέ&#957
+;ων!:this_is_the_pass")          ."\n";

close FILE;
[download]

But when it comes to authentication when i enter the credentials apache says there are wrong.
An encoding issue again? the init.pl file which the above code resides is encoded in 'UTF-8'.

Please suggest something else than hitting my head on the wall ;)