You must confusing things. Are you talking about the simple one-hashes unix has used to "protect" passwords for years or the clear telnet logins that many still use? NT 3.x had security built into it guts (object manager, ntfs, etc) from the start. IIRC,
that was the primary reason it was perceived slower then 95/98 because of all the api call security checks going on. Read a windows kernel book some time and post back.