Auth Component not hashing password

Is there any reason why the Auth component would NOT has the password.
We had this working and suddenly the password is soming out as clear
text.

We're using 1.2rc3

This:

$this->data['Member']['password'] == $this->Auth->password($this->data
['Member']['confirm_password'])

fails since the password is not automatically hashed.

We have in our app_controller:

function beforeFilter()
{
if (isset($this->Auth))
{
$this->Auth->userModel = 'User';
$this->Auth->loginAction = array('controller' => 'users',
'action' => 'login');
$this->Auth->autoRedirect = false;
$this->Auth->fields = array('username' => 'username',
'password' => 'password');
$this->Auth->authorize = 'controller';

}
}
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