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Password weaknesses with LAN Manager

I've heard there is a Windows NT server security issue involving LM hashes and passwords. Can you tell me more about this and how to fix it?
LAN Manager (LM) hashes are an older and weaker method of storing/protecting Windows passwords. There's a further explanation here as well as in my Hacking For Dummies chapter on hacking passwords.

This was first published in January 2006

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