Securely storing passwords in database

Hi all


I wish to store passwords in a database and someone recommended that i store them as encrypted MD5...


I did some research on the web and found out a number of things


1.) md5 can be cracked - so add "salt" to it.
2.) md5 is one way encryption.


What i would like to know is - is this correct?
I was able to encrypt (i hope) a string of characters
with these requirements


*  The Password must be a minimum of 8 in length
    * The Password must be a maximum of 32 characters in legth
    * The Password must contain at least one lower case letter
    * The Password must contain at least one upper case letter
    * The Password must contain at least one digit
    * The Password must contain at least one of the following special characters ! @ # $ % ^ & * _ ...