I agree with Kirk. If someone can get into mysql to see the passwords, they can get into your scripts to see how you are decrypting. Nothing gained.
Also, if they get that far they can get any other data they're after....
I usually store passwords plain text. Where that isn't acceptable for whatever reason, I just use password() and require an email address. If they forget their password I just reset it to an md5 hash as a temp, email it to them and require them to choose a new password when they log in with the temp.