There are a couple of problems here.
Look carefully at the SQL, you are missing quotes around $db_password, missing a comma after it, and missing the close quote around $username.
UPDATE `users` SET
`password`=$db_password `decrypted_password'='$new'
WHERE `username` ='$username
Also, you have an extra call to mysql_query after the UPDATE. I'd check the result like this (untested), the call to mysql_error inside the "or die" would've pointed out the syntax errors in the sql:
$sql = mysql_query("UPDATE `users` SET `password`='$db_password', `decrypted_password'='$new'
WHERE `username` ='$username' ") or die ('error changing password' . mysql_error());
echo "password changed<br>";