What key do you use to encrypt and decrypt the password in the config 
file?  Something hard-coded in the application?  That'll be easy to 
extract, e.g. by single-stepping the binary.

It's also worth mentioning: with many filesystems, when you overwrite a 
file, garbage blocks containing the old file (and hence the cleartext 
passphrase) remain on the system.  This will be true for pretty much any 
filesystem if you decide to do an atomic overwrite of the config file by 
writing out a new file, and then renaming it to replace the old file.  The 
directory entry is updated to point to the new file, but the blocks which 
contain the old file remain until they are re-used at some indeterminate 
time in the future.

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