diff --git a/data/example.conf b/data/example.conf
index c66df17bd..24a0a6422 100644
--- a/data/example.conf
+++ b/data/example.conf
@@ -108,9 +108,10 @@
 #     This determines how the passwords are stored in the databases,
 #     and does not add any security as far as transmitting passwords over
 #     the network goes.
+#     
 #     enc_none provides no password encryption, storing the password in
-#     plain text, this is the most versiatle as passwords can easily be
-#     recovered.
+#     plain text, this is the most versatile as passwords can easily be
+#     recovered but is not secure and therefore not recommended for use.
 #
 #     NOTE: users of anope's previous (broken) md5 implementation should 
 #     select the enc_old option, or things may break.
@@ -125,7 +126,7 @@
 #     SHA1                      -  enc_sha1
 #
 
-EncModule "enc_none"
+EncModule "enc_md5"
 
 ###########################################################################
 #