If you're using the password command on the line, you won't be able to do anything other than service password encryption. If you need md5, your best bet is to use local accounts and aaa authentication:
new aaa-model
aaa authentication local default local
username routertest priv 15 secret testpassword
line vty 0 4
login authentication local
This will allow you to have md5 encrypted passwords, and you won't have to do anything special on the line (other than what I put up there).
Anytime you're doing aaa configuration, be sure to be logged in one window and test in another. It's very possible to lock yourself out of a router.
As far as configuring the password command as md5 directly on the line, I don't believe it's possible.
You can also try:
Router(config)# key config-key password-encrypt testpassword
Router(config)# password aes
The above encrypts isakmp passwords, but I can't remember if it affects all of the passwords that match whatever your "password-encrypt" line is.
Here's a doc:
http://www.cisco.com/en/US/tech/tk583/tk372/technologies_configuration_example09186a00801f2336.shtml
HTH,
John
HTH,
John
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