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I would like to ask, what are the myBB passwords encrypted in. For example when you go to adminPHP you see the encrypted password. What is this encryption?

Thanks.
Salted MD5.
$encrypted_password = md5(md5($salt).md5($plaintext_password));

So when you login it md5s what you put in, md5s the salt, joins these together, md5s that, if that matches the password in the database, it logs you in.
And it does check for plain MD5 passwords as well, in the event you've got user's with old passwords that haven't been salted. Not that this should be an issue.