diff --git a/headers/private/screen_saver/ScreenSaverPrefs.h b/headers/private/screen_saver/ScreenSaverPrefs.h
index 8348104951..97bf620e85 100644
--- a/headers/private/screen_saver/ScreenSaverPrefs.h
+++ b/headers/private/screen_saver/ScreenSaverPrefs.h
@@ -41,7 +41,7 @@ public:
 	bigtime_t PasswordTime() {return fPasswordTime;}
 	const char *Password() { return fPassword.String(); }
 	const char *LockMethod() { return fLockMethod.String(); }
-	bool IsNetworkPassword() {return fIsNetworkPassword;}
+	bool IsNetworkPassword() {return (strcmp(fLockMethod.String(), "custom") != 0);}
 	const char *ModuleName() {return fModuleName.String();}
 	status_t GetState(const char *name, BMessage *stateMsg);
 
@@ -78,8 +78,6 @@ private:
 	BString fModuleName;
 	BString fLockMethod;
 
-	bool fIsNetworkPassword;
-
 	BMessage fSettings;
 	BPath fSSPath, fNetworkPath;
 };
diff --git a/src/bin/screen_blanker/ScreenSaverApp.cpp b/src/bin/screen_blanker/ScreenSaverApp.cpp
index a9c784bc6a..156869394f 100755
--- a/src/bin/screen_blanker/ScreenSaverApp.cpp
+++ b/src/bin/screen_blanker/ScreenSaverApp.cpp
@@ -94,9 +94,7 @@ ScreenSaverApp::MessageReceived(BMessage *message)
 	switch(message->what) {
 		case UNLOCK_MESSAGE:
 		{
-			char salt[3] = "";
-			strncpy(salt, fPref.Password(), 2);
-			if (strcmp(crypt(fPww->GetPassword(), salt),fPref.Password()) != 0) {
+			if (strcmp(fPref.Password(), crypt(fPww->GetPassword(), fPref.Password())) != 0) {
 				beep();
 				fPww->SetPassword("");
 				delete fRunner;
diff --git a/src/kits/screensaver/ScreenSaverPrefs.cpp b/src/kits/screensaver/ScreenSaverPrefs.cpp
index db82baaeb3..50b37f59f2 100644
--- a/src/kits/screensaver/ScreenSaverPrefs.cpp
+++ b/src/kits/screensaver/ScreenSaverPrefs.cpp
@@ -64,10 +64,12 @@ ScreenSaverPrefs::LoadSettings()
 			// This ugly piece opens the networking file and reads the password, if it exists.
 			if ((networkFile=fopen(fNetworkPath.Path(),"r")))
 			while (buffer==fgets(buffer,512,networkFile))
-				if ((start=strstr(buffer,"PASSWORD ="))) {
-					char password[12];
-					strncpy(password, start+10,strlen(start-11));
+				if ((start=strstr(buffer,"PASSWORD = "))) {
+					char password[14];
+					strncpy(password, start+11,strlen(start+11)-1);
+					password[strlen(start+11)-1] = 0;
 					fPassword = password;
+					break;
                                 }
         	}
 		return true;
@@ -124,7 +126,10 @@ ScreenSaverPrefs::GetSettings()
 	fSettings.AddInt32("cornernever", fNeverBlankCorner);
 	fSettings.AddBool("lockenable", fLockEnabled);
 	fSettings.AddInt32("lockdelay", fPasswordTime/1000000);
-	fSettings.AddString("lockpassword", fPassword);
+	if (IsNetworkPassword())
+		fSettings.AddString("lockpassword", "");
+	else
+		fSettings.AddString("lockpassword", fPassword);
 	fSettings.AddString("lockmethod", fLockMethod);
 	fSettings.AddString("modulename", fModuleName);