i don't think i follow, here's exactly how its setup,
the user enters his username and password > submits the form.
PHP takes the password and runs it through a md5 function i have (adds a bit of more security using base64,md5 and seeding it). the username is run through htmlspecialchars,stripslashes and trim.
Then they are sent off to mysql. using a simple username=$username and password=$e_password
is that what your askin?
OR
are you refering to quering the database for the username only and then use php to check the password without sending it? (although i have never thought of doing it that way before)