Never store encrypted passwords. Store a secure one-way hash instead, something like SHA-1 (has some minor security issues), or one of the newer, more secure variants.
Doing so is actually against several regulatory requirements that you may be subject to, such as the PCI DSS if you have any involvement with credit cards (doing any e-commerce?).
Something like http://www.mindrot.org/projects/jBCrypt/ may also prove useful.
+1 for Borealid's comment - even with hashing, the hashing needs to be done properly, and must include "salt" (additional random data to prevent a subset of attacks). jBCrypt will do this for you (as will other similar libraries).