Security - Scripting Passwords

We have a discussion going here about the benefits and pitfalls of
having remote scripted processes utilize OS/400 profiles and, thus,
their scripted passwords in order to connect and execute.  We run into
issues contrary to our password expiration policy, the passing of the
password in the clear across the wire, not to mention the fact that the
password exists in the clear in a file or data area.

I am seeking any and all suggestions / opinions on the best way around
using scripted sign on credentials. 

Best regards,

Steven W. Martinson, CISSP, CISM
Manager of OutLink Security
Jack Henry & Associates, Inc.
7800 Willowchase Blvd.
Houston, TX.  77070
     voice              281.517.8000
     external fax       281.517.8157
     internal ext       471800