Creating a secure AJAX Login?

It's said that it can be done, but I don't see the security in it.

Even if you get a random seed from the server to encrypt the password with before sending it down the pipe, the security hole still exist for the simple fact that seed can probably be intercepted as well.  right.

Some please explain this to me, for it does not seem like such a great solution.
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Can't you just use https?  Then it's a secure as a normal form based login no?
TertioptusAuthor Commented:
thanks for commenting, Id rather go without https
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