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Slim81Flag for United States of America

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Logic behind protecting cookies and sessions variables

Hey guys and gals,
I currently build in ASP but I am starting to dabble in PHP.  Please treat my question as a general question, you can give code examples if you want, but not necessary.

Here is the situation/question:
I was looking through my cookies the other day (in Firefox) and I was appalled to see that I had created a cookie in clear text of my username and password for a service I created.  I realize now that creating a "remember me" option for a username/password doesn't mean I should save their username and password in a cookie.....

First question:
How should a "remember me" option work on the web?

Second question:
How do I store cookies/sessions without the text being readable?

Thanks,
Slim
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Dave Baldwin
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Thanks guys!