- AccessControl: creating a new user through "zpasswd inituser" did not

        work properly with a top-level user folder with enabled password
        encryption.

doc/CHANGES.txt

@@ -26,6 +26,10 @@ Zope Changes
 
     Bugs Fixed
 
+      - AccessControl: creating a new user through "zpasswd inituser" did not
+        work properly with a top-level user folder with enabled password
+        encryption.
+
       - ZCatalog: refreshCatalog() could not be called safely from a ZEO
         client script
 

lib/python/AccessControl/User.py

@@ -1044,7 +1044,8 @@ class UserFolder(BasicUserFolder):
 
     def _doAddUser(self, name, password, roles, domains, **kw):
         """Create a new user"""
-        if password is not None and self.encrypt_passwords:
+        if password is not None and self.encrypt_passwords \
+                   and not self._isPasswordEncrypted(pw):
             password = self._encryptPassword(password)
         self.data[name]=User(name,password,roles,domains)