[Samba] Unix Password Sync -- Are Passwords Encryped?

[Charles McLaughlin]

Hello,

For Unix Password Sync, I am curios how Samba can provide the passwd 
program with an unencrypted password.

If a Windows user presses Control+Alt+Delete and changes their password, 
are the passwords sent over the network in plain text?  Does Samba 
decrypt the password, then provide it to the passwd program?

Thanks,
Charles