What kind of website is this? This may be more work than it's worth. If we're on the same page here, The only way to sniff the data transmitted from the form is to be on the same collision domain as either the server or the client, or to gain remote accesss to any machine which handles the data.
In the case of being on the same collision domain as the client, you're only going to sniff the username/password of accounts that are accessed from computer on that collision domain. If you're sniffing from the server side, however, you could intercept the password of ANY user attempting to log in.
Even if you did javascript encryption, the encrypted string can be intercepted. Though this won't tell the sniffer what the actual password is, they can just use that string instead of the password and bypass your javascript encrypting.
Your only real solution is an SSL certificate.