Great Job and a Very good Idea. I have had my friends vB4.x forums hacked where the hackers later Published all forum Users Usernames, Email, and MD5 Password Hashes out in Public. I know by facts that they hacked their way in by decrypting the Admin Password somehow. And NOT by Brute Forcing their way in. We suspected that they got in because of a Custom Skin installed on the forum that was vulnerable.
I am not saying its not possible to Hack or Decrypt a Password by Brute Forcing, But I would rather Secure my forum and Passwords a bit Extra than just leaving the doors open and Welcome them! At least they would use more time to Crack the Passwords.
Thumbs up and Well Done.
Ps, I asssume you could use the same method for vB3.8. So I hope you will create a version for vBulletin 3.8 Users too.
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