Web base login will only encrypt(and that if you specify it) your login password.
It will not encrypt the users passwords.
Do you mean you can add users to the database and they will be encrypted?
Yes that is an option but the OP must still use a control that will view the data,make a function that will insert users to the database thus playing with asp.net security,use authentication,Authorization, be sure to use an encryption key because hased protection will make the passwords unreadable thus he must play with the web.config and also be sure that to encrypt the web.config so the encryption key and the connectionstring would be unreadable.He must also make sure to decrypt everything on web.config if he decides to move the app in another server.
That is a long way to go and i believe that if the OP wants a simple user,pass list the excel is fine.
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