[Rails] MySql 4.1.9, passwords, Rails

[Jamie Orchard-Hays]

After spending a lot of time today trying to get CocoaMySQL connecting 
to a remote MySQL 4.1.9 server via ssh tunnel and then experiencing the 
password hashing issue locally when I put in passwords on my local 
Mysql server, I started wondering about Rails compatibility.

Will rails now hash passwords correctly when connecting to MySql 
4.1.7+, or should I stick with using old_password() when creating them 
in MySQL?

Thanks
Jamie