I'm wondering if AES (CreditCard) may be something you could use. I admit I'm very much a novice when it comes to coding with encryption so this might sound like a very stupid answer. Figured it coulnd't hurt to toss it out there and see if it helps :-)
Encrpytion and hashing solve different problems. In this case, hashing is much better. If the database is ever compromised, the passwords will be much safer if they have been hashed, as opposed to encrypted.