what's the best methode to crypt/encode the python code.

[Gerson Kurz]

PyAES provides Rijndael (=> AES) encryption capabilities for python,
implemented in an external module so its fast, too: 

http://sourceforge.net/projects/pyaes

The "Don't-Store-The-Password"-Mechanism explained, since this comes
up again and again:

A symetric encryption alg (like Rijndael) does this

algorithm(data,key) => encrypted_data
algorithm(encrypted_data,key) => data

See, given the key you can encode a message, and decode it back again.
So, for any given encrypted message, there is only one possible
decrypted message (and vice versa). At least, thats what the books
say. 

Password checks is implemented like this:

1) Calculate 

algorithm(data,key)

where data is the password you want to use. This gives you an
encrypted password that you can store in your db.

2) When you want to check if a password is valid, you do

algorithm(user-input,key)

if the result - the encrypted password - is the same as the password
previously encrypted, the input was correct.

Easy, right?