Hmm, I use a desktop FTP App, and do have the password saved. Wouldn't they have to get into my machine somehow to access that (encrypted) saved password? I'm fairly confident with my network security at home.
The other thing is that this could be from a security hole in Joomla itself (or a module of Joomla) or phpBB. They are both old versions, so there could easily be a hole, and the plan was to leave it as such till migrating to Beoir. If I don't find any changed pages, and changing passwords doesn't stop another hack, we'll have to migrate the site early (while keeping it ICB till July or just move to the Beoir site anyway).
Atticus, you can lead the inquisition <!-- s:D --><img src="{SMILIES_PATH}/icon_biggrin.gif" alt="

" title="Very Happy" /><!-- s:D -->