Unfortunately I don't think there's any mod or one place to change this. The check of the password when you log in is in function verify_authentication() in includes/functions_login.php, and there's a hook there for if it fails, which you could use to create a plugin to do a different password check. But I believe "Remember Me" works by keeping the encrypted password in a cookie, and of course you'd also have to modify the code where the password is changed or set. I'm also not sure if the admicp login uses the same function to check the password. I don't know if it can all be done in plugins.
Searching the code for "md5(md5(" might be a good way to start.
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