When doing a kickstart installation with RedHat 6.0 (kickstart is great!) and writing something like rootpw --iscrypted 8d78LWoez74ef in the kickstart file sets the root password to "8d78LWoe". --iscrypted still worked in 5.2. I quickly looked through the code in install2, but there were little changes in the password code, so I could not figure the problem out. I have --useshadow in auth config.
*** This bug has been marked as a duplicate of 2460 ***