well I was  checking with different nicknames that use the password 123456 and it seems every nick I tested had the same encryption string, Which means paltalk has pre set value for each position of the password, then it just adds the matching charactor of your password

Example:

1.Position 1 of password = 241

2.Position 2 of password = 287

3.Position 3 of password = 302

4.Position 4 of password = 303

5.Position 5 of password = 307

6.Position 6 of password = 324

Now if you have a password “123456″ then

Position    Paltalk     Your password       Result       Final
    1.           241     +        1    =     242    +   RandomNumber
    2.           287     +        2    =     289    +   RandomNumber
    3.           302     +        3    =     305    +   RandomNumber
    4.           303     +        4    =     307    +   RandomNumber
    5.           307     +        5    =     312    +   RandomNumber
    6.           324     +        6    =     330    +   RandomNumber

Or lets say you had a password with “476987″

Position    Paltalk     Your password       Result       Final
    1.           241     +        4    =     245    +   RandomNumber
    2.           287     +        7    =     294    +   RandomNumber
    3.           302     +        6    =     308    +   RandomNumber
    4.           303     +        9    =     312    +   RandomNumber
    5.           307     +        8    =     315    +   RandomNumber
    6.           324     +        7    =     331    +   RandomNumber

Test it for your self, make a new nick with a password “476987″ and see if you get the same result

X = Random Number

so the pass should look like this: 245X294X308X312X315X331X

Update:

Paltalk Only allows 12 characters max length for password, so here are the paltalk static numbers for each positions

1.241

2.287

3.302

4.303

5.307

6.324

7.244

8.331

9.307

10.321

11.232

12.289

I got this by using a password “000000000000″ then removing the random number, as you can see it matches in perfect with what I was explaining above

so my paltalk encrypted password = “241928743028303730703240244233193071321423242898″

Now to make a password stealer would be very easy, But because im against that sort of activity I wont be explaining the methods you need to use.

Update 2:

here are the character values if you use ascii in your password

“a..z” = “49..74″ for Example (“a” = 49) (“b” = 50) (“c” = 51) ect….

This is for lower case characters!!

“A..Z” = “17..42″ for Example (“A” = 17) (“B” = 18) (“C” = 19) ect….

This is for Upper case characters!!

Example if I had a password called “cunix1″ the value you need to add to the paltalk static positions would be

1. 51 = c

2. 69 = u

3. 62 = n

4. 57 = i

5. 72 = x

6. 1 = 1

so going by our paltalk magic numbers…

Position    Paltalk     Your password       Result       Final
    1.           241     +        51    =     292    +   RandomNumber
    2.           287     +        69    =     356    +   RandomNumber
    3.           302     +        62    =     364    +   RandomNumber
    4.           303     +        57    =     360    +   RandomNumber
    5.           307     +        72    =     379    +   RandomNumber
    6.           324     +        1     =     325    +   RandomNumber

X = Random Number

your encrypted password = 292X356X364X360X379X325X

Below is an example written in delphi to demonstrate how this works

Paltalk Web Login Pass Generator (277)