Hi,
First off, I wouldn't really store password in session, even if it is md5'd.
I have seen many posts in other forums about session security and hijacking, but one thing to remember is that the session is usually stored in a tmp dir that is outside your web directory - that means inaccessible to the outside world.
This means that the session can only be hijacked if the server if hacked.
You could md5 the level too I suppose so that the hacker wouldn't know what information was actually stored in the session.
It is really up to you to decide how critical information is and what damage a hacker could do with the information per level.
For added security you could ensure that the session is only accessible from one IP:
$_SERVER['REMOTE_ADDR']
Hope this helps.
There are tonnes of threads on Devshed
Br
Jamie