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Thanks all, here is the excerpt from rfc2877: 5. Enhanced Display Auto-Signon and Password Encryption Several 5250 Telnet server specific USERVAR's will be defined. One will carry a random seed to be used in Data Encryption Standard (DES) password encryption, and another will carry the encrypted copy of the password. This would use the same 7-step DES-based password substitution scheme as APPC and Client Access. For a description of DES encryption, refer to Federal Information Processing Standards Publications (FIPS) 46-2 [17] and 81 [18], which can be found at the Federal Information Processing Standards Publications link: http://www.itl.nist.gov/div897/pubs/by-num.htm For a description of the 7-step password substitution scheme, refer to these IBM Customer Support FTP Server links: ftp://ftp.networking.ibm.com/pub/standards/ciw/sig/sec/pwsubciw.ps ftp://ftp.networking.ibm.com/pub/standards/ciw/sig/sec/pwsubciw.ps.Z ftp://ftp.networking.ibm.com/pub/standards/ciw/sig/sec/pwsubciw.zip If encrypted password exchange is not required, clear-text password exchange is permitted using the same USERVAR's defined for encryption. For this case, the random client seed should be set to either an empty value (RFC 1572 preferred method) or to hexadecimal zeros to indicate the password is not encrypted, but is clear-text. It should be noted that security of clear-text password exchange cannot be guaranteed unless the network is physically protected or a trusted network (such as an intranet). If your network is vulnerable to IP address spoofing or directly connected to the Internet, you should engage in encrypted password exchange to validate a clients identity.
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