This is the only tool I have been able to find to perform this sort of task but I have not fully evaluated it so it may or may not...

The sp_addlogin already contains an encryption option parameter with flags. 

The first one uses the undocumented (see here: http://www.nextgenss.com/papers/cracking-sql-passwords.pdf) pwdencrypt function to encrypt.

The second allows you to pass in...

The moral of the story is don't let your developers run rampant without some training and understanding of the tools they are using.  .NET is a fantastic toolset and timesaver...

Just a note of caution about using wininet.dll.  Make sure that you do not attempt to use it or a wrappered version of it as a server side component callable...

Perhaps I'm missing something but if the accounts you mentioned are Production accounts that only have read and write respectively, how are your users able to login with them and...