Thanks. That's it then. I'm aware that there are non-reversible
encryptions, but I didn't consider that possible, because years ago I used
another password cracker (fee-based, from a commercial operation) to recover
a password from a Win2k system. It required copying the sam file and
emailing it to them. I guess they did it by brute force, until they found a
password that created the same encrypted data. I had always assumed they
decrypted it.
Yes, these things are done by trial and error. Often such a company
will have large "rainbow" tables - they take tables of likely passwords
(such as common kids names, common pet names, misspellings of
"password", birthdays, etc.), dictionaries, etc., and run each one
through the password encryption algorithm. Then "cracking" the password
is as simple as looking it up in this table. If they get a match, they
have the original password. If not, then they need to run through
exhaustive searches.
If you ever have to break into a windows system again, it is a lot
easier to use a windows password reset live CD. These don't make any
attempt to identify the old password, but simply replace it with a known
(blank) one. It's a lot faster and cheaper than an external company.
If you actually need to recover the password rather than just change it
to something you know, there are again free tools for that.