Yes. In general the password is always encrypted in NMS and then transmitted from client to server.
There are two levels defined in NMS :
Users - Guest users, privilege to login, and to see all the data.
Admin - Super users / Administrators have all the privileges.
For complete information, refer to Implementing Custom Authentication.
Edit the NmsProcessBE.conf file (located ion <Web NMS Home>/conf directory), as shown below
#java com.adventnet.nms.security.authorization.NmsAuthManager [ AuthorizationEngineImpl
] [ AuthorizationAdminImpl ] [ time_interval_for_security_scheduler in
ms ] [ change_password_for_firsttime_login ][AuthAuditAPIImpl]
ARGS NULL NULL 0 false
By default the value of the parameter named change_password_for_firsttime_login is set to false. This implies that Password Configuration Dialog will not come when the users login for the first time. Change the value of change_password_for_firsttime_login to "true" and start the server.
Note: Users added after these 2 steps will only get the Password Configuration Dialog on their first login.