It would have to be a very old release indeed.
IIRC, Oracle 7 sent the password encrypted.
There were exceptions: the first logon attempt was encrypted.
Subsequent attempts ( as in you typed the password incorrectly)
would be sent in clear text.
A perusal of the docs would probably be in order.
The OP has not stated if his original question has been answered.
It was rather vague.
Jared
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Jared Still
Certifiable Oracle DBA and Part Time Perl Evangelist