follow these steps in order -
1. take a back up of your users.xml file
2. open the users.xml in any editor - test OR xml
3. plaintextPasswords="true" --> very important
4. follow the security guide to create users / password ALL OF THEM AT ONCE. save and close.
5. Recycling of MoM / Webview not necessary. If you wait few minutes, the MoM picks it up and next time you open the file, you should see the password is encrypted already. The realty is MoM can't keep the password in text format. It will change the plaintextPasswords="false" automatically.
The a user's password is already encrypted, live it alone.
6. Try to logon and validate. if it does not work, that means you have screwed up somewhere. Try all over over again. Sometime the MoM double encrypts the file and you can't logon even using the existing user ids.
I have faced all of this and succeeded.
- David