An excellent article that explains password security and how we should be storing passwords in the database.

http://threetwelvecreative.com/blog/bid/266517/Developers-You-re-Probably-Doing-Passwords-Wrong-Too via reddit

The only thing I would add (and I did in the comments) is that as an added layer of security you can add a site wide salt that is stored in a file. Even if an attacker gets your database, they realize that you're salting your passwords, and they do a brute force lookup they will still be missing information and won't be able to determine the passwords.