Cisco uses two types of password encryption to store your passwords. Type 7 is the Cisco proprietary method (Vigenere cypher) and is weak. The Type5 is encrypted using MD5 hashing, and is considered pretty strong. The "enable secret" password is stored using Type 5.
One can easily crack the Type7 passwords w/ utilities that are available on the net.
You can also do it straight from inside the IOS. Just create a key chain, and copy paste the encrypted string to the "key-string 7". Here's how: