No, you need the unencrypted password. This has been (quite needlessly) debated on the list and likely is in the FAQ as well. One or more of those sources may have alternatives listed if you're so inclined.
You might want to change your rootpw now that you told it to us...
On Tue, 13 Nov 2007, Peter Clark wrote:
Hello,
I have used slappasswd -s to create an encrypted rootpw, ie. rootpw {SSHA}Rwilfur49jrtPsw7dJJPp5RBoX2f+gHV
Can I use this same entry ({SSHA}Rwilfur49jrtPsw7dJJPp5RBoX2f+gHV) in the replication credentials or do I need to put the unencrypted password instead. ie:
replica credentials="6202f430d9c9a97da8d041946847643f" or replica credentials="{SSHA}Rwilfur49jrtPsw7dJJPp5RBoX2f+gHV"
Thank you for your time.
Peter Clark