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...This is a demonstration of working of XOR encryption which was used by Germans in World War II (http://en.wikipedia.org/wiki/Lorenz_cipher) . Besides from XOR'ing the message with password after every encryption the key changes pseudorandomly. The password you provide is hashed ( SHA256 ) and saved into the encrypted file to check if the password provided is correct.This algorithm has limitations in general more the numbers of relative characters in the password to plaintext more secure will be the encryption. XOR encrypt has a 3.5 of 5 editors rating from softpedia http://www.softpedia.com/get/Security/Encrypting/XOR-Encrypt.shtml

Flash/PHP adaptation of the XTEA encryption algorithm. Allows encryption/decryption of sensitive data using 128-bit key. May be used for network data (HTTP) or offline for implementations like secure CD-ROM projects.