to all those concerned,
i found my solution! probably not the solution for everyone, but since i already had passwords encrypted in the flatfile database, the passwords were still saving to the mysql database mangled. i simply reset my databases (luckily i didnt have any users as i havent officially "opened" the server) and set MysqlSecure to the appropriate encryption, i also changed the pass field in anope_ns_core to text instead of tinyblob. now my passwords are coming out in plain text instead of binary, and the web interface is accepting the passwords.
thank you to all those that helped me on the way. your help is much appreciated. ;]