diff --git a/lib/functions/system/function.makeCryptPassword.php b/lib/functions/system/function.makeCryptPassword.php
index 03af5013..730af6af 100644
--- a/lib/functions/system/function.makeCryptPassword.php
+++ b/lib/functions/system/function.makeCryptPassword.php
@@ -19,8 +19,6 @@
 
 /**
  * Make crypted password from clear text password
- * @param string Password to be crypted
- * @return string encrypted password
  *
  * @author Michal Wojcik <m.wojcik@sonet3.pl>
  * @author Michael Kaufmann <mkaufmann@nutime.de>
@@ -29,12 +27,16 @@
  * 0 - default crypt (depenend on system configuration)
  * 1 - MD5 $1$
  * 2 - BLOWFISH $2a$ | $2y$07$ (on php 5.3.7+)
- * 3 - SHA-256 $5$
+ * 3 - SHA-256 $5$ (default)
  * 4 - SHA-512 $6$
+ *
+ * @param string $password Password to be crypted
+ *
+ * @return string encrypted password
  */
 function makeCryptPassword ($password) {
 
-	$type = Settings::Get('system.passwordcryptfunc') !== null ? (int)Settings::Get('system.passwordcryptfunc') : 1;
+	$type = Settings::Get('system.passwordcryptfunc') !== null ? (int)Settings::Get('system.passwordcryptfunc') : 3;
 
 	switch ($type) {
 		case 0:
diff --git a/lib/functions/validate/function.validatePasswordLogin.php b/lib/functions/validate/function.validatePasswordLogin.php
new file mode 100644
index 00000000..4b7ccc03
--- /dev/null
+++ b/lib/functions/validate/function.validatePasswordLogin.php
@@ -0,0 +1,80 @@
+<?php
+
+/**
+ * This file is part of the Froxlor project.
+ * Copyright (c) 2010 the Froxlor Team (see authors).
+ *
+ * For the full copyright and license information, please view the COPYING
+ * file that was distributed with this source code. You can also view the
+ * COPYING file online at http://files.froxlor.org/misc/COPYING.txt
+ *
+ * @copyright  (c) the authors
+ * @author     Froxlor team <team@froxlor.org> (2010-)
+ * @license    GPLv2 http://files.froxlor.org/misc/COPYING.txt
+ * @package    Functions
+ *
+ */
+
+/**
+ * Function validatePasswordLogin
+ *
+ * compare user password-hash with given user-password
+ * and check if they are the same
+ * additionally it updates the hash if the system settings changed
+ * or if the very old md5() sum is used
+ *
+ * @param array $userinfo user-data from table
+ * @param string $password the password to validate
+ * @param string $table either panel_customers or panel_admins
+ * @param string $uid user-id-field in $table
+ *
+ * @return boolean
+ */
+function validatePasswordLogin($userinfo = null, $password = null, $table = 'panel_customers', $uid = 'customerid') {
+
+	$systype = 3; // SHA256
+	if (Settings::Get('system.passwordcryptfunc') !== null) {
+		$systype = (int)Settings::Get('system.passwordcryptfunc');
+	}
+
+	$pwd_hash = $userinfo['password'];
+
+	$update_hash = false;
+	// check for good'ole md5
+	if (strlen($pwd_hash) == 32 && ctype_xdigit($pwd_hash)) {
+		$pwd_check = md5($password);
+		$update_hash = true;
+	} else {
+		// cut out the salt from the hash
+		$pwd_salt = str_replace(substr(strrchr($pwd_hash, "$"), 1), "", $pwd_hash);
+		// create same hash to compare
+		$pwd_check = crypt($password, $pwd_salt);
+		// check whether the hash needs to be updated
+		$hash_type_chk = substr($pwd_hash, 0, 3);
+		if (($systype == 1 && $hash_type_chk != '$1$') || // MD5
+			($systype == 2 && $hash_type_chk != '$2$') || // BLOWFISH
+			($systype == 3 && $hash_type_chk != '$5$') || // SHA256
+			($systype == 4 && $hash_type_chk != '$6$')    // SHA512
+		) {
+			$update_hash = true;
+		}
+	}
+
+	// check for update of hash
+	if ($update_hash) {
+		$upd_stmt = Database::prepare("
+			UPDATE " . $table . " SET `password` = :newpasswd WHERE `" . $uid . "` = :uid
+		");
+		$params = array (
+				'newpasswd' => makeCryptPassword($password),
+				'uid' => $userinfo[$uid]
+		);
+		Database::pexecute($upd_stmt, $params);
+	}
+
+	if ($pwd_hash == $pwd_check) {
+		return true;
+	}
+	return false;
+
+}