Question : perl encryption

im writing perl script for id, password and uploading file...
using both win98 and linux...

for time being im using perl command something like this:
$test_passwd = crypt($SUBMIT{'pwd'}, substr($pwd, 0, 2));

so my question,
1 how reliable this encryption from de-encrypt by others(hackers?)... data are very valuable
2 im also thinking of encrypting line by line of ascii data uploaded to server... yup , i know it use much of my RAM. but i have to... is there any better solution (eg encrypt entire file rather line by line??
3 is there other better command or (command combination)  in perl to make encryption?

helps are very much appreciated , tq

Answer : perl encryption

Hope all works OK.