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It does mean that passwords aren't properly hashed. They may be encrypted, but that still leaves open the possibility for an engineer or attacker to have access to plain text passwords.
No, it does not. You can receive the password, email it to creator, hash it, and then store it. It's not ideal because you now expose it in plaintext in the original email, but you aren't storing plaintext.
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Been with gandi.net for a few years now; excellent service and 2-factor auth.
Wouldn't recommend them. I heard they have a "moral contract" you have to agree to. If they don't like what you're doing with your domains (even if it's legal), they can (I forget, seize or kick you out, but bad stuff).
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When a customer calls into the GoDaddy call center, they are supposed to provide a 4 digit pin in order to gain access to their account. I don't work in that department, but I'll forward the page to the CEO and make sure it gets read and addressed.
While you're at it, tell him to stop shooting elephants, donating money to Mitt Romney, decorating your web site with scantily clad women, and acting like a sexist pig. Edit: I see you got a new CEO since I and so many other customers left in disgust about your company's support of SOPA and all those other issues. I'm sure you still have binders full of scantily clad women to decorate your booths at trade shows. Your…
What if this whole story was a lie? What if it was the hacker's final attempt to steal the @n twitter name.