Okay, So I'm monkeying with MySQLdb... Basically, I am creating a script that
can be run for our administrators to simply type data and have it inserted
into server_ftp table. Everything works, except I cannot get the hashed
password to insert into the "password" field in the table. I'm sure there is
an issue with my coding. Any ideas?

    import MySQLdb

    conn = MySQLdb.connect (host = "****",
                            user = "****",
                            passwd = "****",
                            db = "server_ftp")

    user = raw_input("Enter username: ")
    passwd = raw_input("Enter password: ")
    clear = raw_input("Enter password again: ")
    homed = raw_input("Enter home directory: ")

    import hashlib

    def mysql_password(passwd):
            """
            Hash string twice with SHA1 and return uppercase hex digest,
            prepended with an asterix.

            This function is identical to the MySQL PASSWORD() function.
            """
            pass1 = hashlib.sha1(passwd).digest()
            pass2 = hashlib.sha1(pass1).hexdigest()
            return "*" + pass2.upper()

    cursor = conn.cursor ()

    cursor.execute ("INSERT INTO vhosts (userid, password, clearpw, homedir) VALUES (%s, %s, %s, %s)", (user, passwd, clear, homed))

    print "Number of rows affected: %d" % cursor.rowcount

You're making it much too hard. Just change your query to make use of the
built-in PASSWORD() functon:

{{{

INSERT INTO vhosts (userid, password, clearpw, homedir) VALUES (%s,
PASSWORD(%s), %s, %s)

}}}

That should do the trick. But your real bug is, you never called
mysql_password() to get the hashed password.