Netscape email security issue downplayed by Netscape

A ZDNet News article (from WSJ Interactive Edition) writes of a "potentially serious security flaw in the e-mail system used by Netscape's Web browser":

Reliable Software Technologies was able to duplicate the mathematical algorithm Netscape Mail uses to scramble users' passwords, making it possible to reverse-engineer a algorithm that could figure out passwords. The problem affects all current versions of Netscape.

Officials of Netscape said that they have no plans to change its algorithm. Barring the presence of the JavaScript vulnerability alleged by RST, Netscape didn't view the password problem as a security issue, adding that "we can't be responsible for physical access to people's machines."