I'm using Jaspyt and Spring 3 in my Java project. I currently store the database connection properties in a properties file. The user name and password are plain text, so I've been looking at using Jaspyt's EncryptablePropertyPlaceholderConfigurer.
The documentation and tutorials suggest storing the master password used for decryption in an environment variable. Is that really any more secure than storing plain text values in the properties file? If someone compromises the box, wouldn't the master password be either visible in (1) the environment variables or (2) the server start-up script? I suppose you could manually set the environment variable and unset it after server start-up, but the manual process of that seems unmanageable.
Am I just being paranoid? Is there an approach that you've used to secure your connection user names and passwords?