mcrypt is a library of encryption functions. PHP supplies an interface to mcrypt, but it's not compiled in by default (and hence your error message.)
Therefore, the first step is: if you are NOT running your own server, then you need to go plead with those who are to please recompile PHP with mcrypt.
If you ARE, then go read all the stuff on php.net about obtaining and installing mcrypt, and pay special attention to the note about required versions:
 l; Use libmcrypt-2.2.7 with PHP <= 4.0.1pl2; or else it
 l; wouldn't compile. The reason is API of the lib has been changed.
 l;For libmcrypt-2.4.4 you need PHP >= 4.0.2.