hash+salt is for storing passwords you will authenticate against (like
/etc/shadow, for instance). In this case, it's the remote credentials so
you don't have to type them on each connection. If it was crypt+salted
how would the software know what the password is without showing it to
everyone anyways?

The final solution is to use the keyring. I will have to see how that is
done (or submit a patch *hint*hint*hint*) :)

-- 
tsclient stores user/password as clear text
https://bugs.launchpad.net/bugs/296682
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