>>I was confusing the two for long time myself. Hashing means you never retrieve the original value of password and just store something. You then compare hash value of the password with the stored string. Two different passwords can potentially generate the same hash value.
>>
>>For encryption you store encrypted value and you can get back the original value if you know the encryption key.
>
>So for me it looks like storing encrypted value is what I doing now and want to continue. But instead of using my own function use something that is built into SQL Server.

In this case start from this link

http://technet.microsoft.com/en-us/library/bb964742.aspx

and then read through all the links on the left side.