First: only an idiot would put a password into source code. That's what configuration files are for. What, you want to have to edit a script every time the password changes?
Second, there's no point encoding, encrypting or otherwise "securing" the configuration file. If a user has access to your configuration files, he has access to everything else, and all your security is useless.
So really the question is: I don't want the neighbours to see me naked. What should I tattoo on my butt-cheeks to make me safe?