Hey guys, I added this to my sign up code :

$password=mysql_real_escape_string(sha1($_POST['password']));

and now it inserts the password into the database while its encrypted. But signing in doesn't seem to work anymore. Here is the login code.

function checklogin($username, $password){
            global $mysqli;

        $password=sha1($password);
            $result = $mysqli->prepare("SELECT * FROM users WHERE username = ? and password=?");
            $result->bind_param("ss", $username, $password);
            $result->execute();

        if($result != false){

            $dbArray=$result->fetch();


            if(!$dbArray){
                echo '<p class="statusmsg">The username or password you entered is incorrect, or you haven\'t yet activated your account. Please try again.</p><br/><input class="submitButton" type="button" value="Retry" onClick="location.href='."'login.php'\">";
                return;
            }
            $_SESSION['username']=$username;

            if(isset($_POST['remember'])){
                setcookie("jmuser",$username,time()+60*60*24*356);  
                setcookie("jmpass",$password ,time()+60*60*24*356);
            }

        redirect();
        }