PASSWORD() is NOT recommended for the use you have. SHA1() is the recommended method: it returns a 40 char string:
from mysql.com:
PASSWORD(str)
Calculates and returns a password string from the plaintext password str, or NULL if the argument was NULL. This is the function that is used for encrypting MySQL passwords for storage in the Password column of the user grant table.
mysql> SELECT PASSWORD('badpwd');
-> '7f84554057dd964b'
PASSWORD() encryption is one-way (not reversible). PASSWORD() does not perform password encryption in the same way that Unix passwords are encrypted. See ENCRYPT(). Note: The PASSWORD() function is used by the authentication system in MySQL Server, you should not use it in your own applications. For that purpose, use MD5() or SHA1() instead. Also see RFC 2195 for more information about handling passwords and authentication securely in your application.
SHA1(str)
SHA(str)
Calculates an SHA1 160-bit checksum for the string, as described in RFC 3174 (Secure Hash Algorithm). The value is returned as a string of 40 hex digits, or NULL if the argument was NULL. One of the possible uses for this function is as a hash key. You can also use it as a cryptographically safe function for storing passwords.
mysql> SELECT SHA1('abc');
-> 'a9993e364706816aba3e25717850c26c9cd0d89d'
SHA1() was added in MySQL 4.0.2, and can be considered a cryptographically more secure equivalent of MD5(). SHA() is synonym for SHA1().