The Microsoft Windows 2000, Microsoft Windows XP, and Microsoft Windows 2003 Security Accounts Management Database (SAM) stores hashed copies of user passwords. This database is encrypted with a locally stored system key. To keep the SAM database secure, Windows requires that the password hashes are encrypted. Windows prevents the use of stored, unencrypted password hashes.
You can use the SysKey utility to additionally secure the SAM database by moving the SAM database encryption key off the Windows-based computer. The SysKey utility can also be used to configure a start-up password that must be entered to decrypt the system key so that Windows can access the SAM database. This article describes how to use the SysKey utility to secure the Windows SAM database.