Hey folks. As the guy responsible for the profiling and authentication systems, I wanted to chime in with a few clarifications…
On Authentication: The discussion thus far has been pretty good. One thing to understand is that there is no assumption that name and password pairs is what must be used. This is an artifact of the initial Protocol being used, which only supports challenging clients for a name and passphrase. The Client API that is currently available is designed to work with this simple protocol. Likewise, the Authentication modules written thus far for the server support the protocol. When the code is released, you’ll be able to plugin new protocol handling, which will also let you define any authentication scheme you wish. As folks have already discovered, the authentication system on the server is pluggable; if anyone has specific questions about how to use this, feel free to ping me.
On Security of Credentials: Related to how users are authenticated, and how credentials are expressed, is how the process is secured. The “easy” and standard way to protect this process is either to use TLS to protect the communications, or to use a one-time scheme; both of these have been discussed here already. Again, when you see how to plugin protocols, you’ll also see how to support these schemes. Rest assured that the current model is designed with all of this in my mind. If you google for some of the security-related work I’ve done, you’ll see that I have a passion for this stuff 
On Profiling: Yeah, those numbers are somewhat dense, huh? Here’s the short version. We have a basic profiling system in the current stack that lets us monitor what’s going on. Over the next several weeks we’ll be adding a number of features, but currently you can observe stats about tasks, retries, queue-length, operations within a task, etc. There’s also a generic listener interface for consuming these statistics and formatting them. The two that output on ports 43005 and 43007 are examples that we’ve been using to watch some basic aspects of the system internals. Again, if anyone wants more detail about these, feel free to ask. Pretty soon we’ll be releasing all the details about how this works, and you’ll be able to write your own modules to observe, aggregate, and correlate what’s happening. On the whole, I think it’s pretty cool how much data you can extract about the state of the system.
Hope this helps…
seth