It's the year 2004, and windows xp service pack 2 still stores its hashes using lm. Lm being origianlly developed by ibm over twenty yeas ago relies on DES encryption (insecure) and to make matters worst, in windows lm hashes are broken into two parts eaching being seven charecters or less. This means that with a fast machine, one person with one computer can brute force this hash in under one day. The only reason any one would still use this insecure hash is to maintain backward compatibility with windows 95. Follow
this link to micsofts website for instructions on how to disable LM hashes on your xp machine.
