I read sha1 was much more secure than MD5. This is true but:
http://www.techworld.com/security/news/index.cfm?NewsID=3156
OK, so it's still very, very hard to break but it still leaves us with no really secure and easy hashing system.
Yes, it is much more secure than MD5 which was broken years ago.
Anyway, this crack ONLY AFFECTS sums, really. If you have the original data, and the hash, you can make extra data that also makes the match... in other words, let's say:
abc
Generates the hash:
1234
This attack allows you to find another, say:
dbc
That also generates the same hash. Why is this point so important?! You HAVE to know "abc"! In other words, this only works if you ALREADY KNOW the password. If you don't know it, there's still no known way to get the password.
That means if you are the only person who knows your password, "abc", then no one can use this against you.
So, it leaves you with a secure hashing system. And, again, it's more than possible to upgrade later on.