db security (md5)

I wanted to use md5 authentication method for my pg db. I was initially
using a trust method and I noticed when I switched to md5 I had to assign a
password to the user postgres as it was created without one. Here do I pass
an md5 encrypted string? Also everytime I connect via perl's DBI do I have
to pass it the encrypted string (if so which perl module for md5 encryption
is the best to use?)
I was confused as to whether I should create the password encrypted or
whether postgres saves it encrypted.
Sally

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