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Encrypting Authentication Passwords.

I was woundering anybody could  comment on the following questions.
I am running openldap-1.2.11-15 (the latest RedHat release) on an intel
machine with RedHat 7 (kernel 2.2.16-22) as the OS, I have also been
working with openssl-0.9.5a-14 and stunnel-3.10-2 in an attempt to
encrypt the cleartext authentication password.
I have ldap authentication working but can't get any encryption
working, openssl certificates have been created and are accepted by
stunnel. I have My client side /etc/ldap.conf has the following appended
to it (but it doesn't make any difference).
 ssl yes
 sslpath /usr/local/ssl/certs

Is it possible to make the ldap client use ssl to encrypt the password
based on the version of ldap that I am using (I understand from the
archives that this is not an option prior to ldapv3) ??

Is there a 'better' way to encrypt the password using the ldap version
that I have, hopefully without using kerebos ??

Barry Wright