encode or encrypt? Data or programs?
If you want your php code to be encoded so other folks can't just wander around in your source code, then look at the Zend Compiler (www.zend.com) which can compile your php into an intermediate form that is not directly human readable.
However, be quite sure that any program that will be executed on a machine you don't own can be hacked / reverse engineered, and compiling does NOT equal encrypting.
If you want to encrypt data for storage, look at mcrypt and the associated functions in the PHP documentation.