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Eggdrop uses the blowfish module to encrypt user's passwords. Please note, that when you change your encryption method later (i.e. using other modules like a md5 module) you can't use your current userfile anymore. Eggdrop can't start without an encryption module.
Put this line into your Eggdrop configuration file to load the blowfish module:
Copyright © 1997 Robey Pointer
Copyright © 1999, 2000, 2001, 2002, 2003, 2004 Eggheads Development Team