pwdencrypt is not a documented feature of SQL Server (in other words, don't use it, get some real encryption).
But hey, in anycase, it returns a varbinary result, not a nvarchar result, so mashing it into a nvarchar will probably earn you problems.
QA is going biserk because its expecting double-byte unicode to come out of the nvarchar column, and your pwdencrypt in nvarchar is probably a byte too long (or makes a \t), so QA is getting mixed up on where the column ends.
The way around this?
CREATE TABLE #user(users varchar(50), passw varchar(50), title varchar(50), fullname VARCHAR(50))
insert into #user select 'stephenj','password1','ceo','James Stephen'
SELECT * FROM #user
alter table #user add passwbin varbinary(256)
update #user set passwbin=pwdencrypt(passw)
alter table #user drop column passw
SELECT * FROM #user
DROP table #user
Julian Kuiters
juliankuiters.id.au