String1 = 1 charactor from username and 1 charactor from HD serial

so if ..

Username = Departure
HD serial = 08DE56F

Then String1 would = D0e8pDaEr5t6uFre

Now we take String1 and add i together 3 times…

String2 = String1 + String1 +String1
String2 = D0e8pDaEr5t6uFreD0e8pDaEr5t6uFreD0e8pDaEr5t6uFre

Okay now we know this string…

in the password kept in the registry of paltalk we have 4 digits for each character of password, for example if my password was “Freak”
then paltalk registry would like this

F r e a k
xxxx xxxx xxxx xxxx xxxx <--- paltalk registry encrypted password.

So thats a 5 byte password, in each 4 digits (xxxx) we drop the last digit, its not used and has something to do with time, Say for example the 5 lots of digits looked like this…

2341 8256 2516 4098 3789
we would drop the last digit of each group of digits like this
234 825 251 409 378

so now we start from the LAST character of our String2 and we create something
like this…
String2 = D0e8pDaEr5t6uFreD0e8pDaEr5t6uFreD0e8pDaEr5t6uFre
paltalk registry encrypted value after droping last digit =
234 825 251 409 378

So…….
1st Password Char = char(234 – ascii code(e) – 0 – 122)

Now we go back to the begining of String2 to continue,Only the First password charactor was using the last of our string2..

2nd Password Char = char(825 – ascii code(D) – 1 – 122)
3rd Password Char = char(251 – ascii code(0) – 2 – 122)
4th Password Char = char(409 – ascii code(e) – 3 – 122)
5th Password Char = char(378 – ascii code(8) – 5 – 122)

So if you know the ascii table you have no problems translating this into a math sum

example from above..
ascii values: e = 101, D = 68, 0 = 48, e = 101, 8 = 56

so the sum would look like this…
1st. 234 – 101 – 0 – 122 = 11
2nd 825 – 68 – 1 – 122 = 634
3rd 251 – 48 – 2 – 122 = 79
4th 409 – 101 – 3 – 122 = 183
5th 378 – 56 – 4 -122 = 196

Then just convert the result for each charactor back to ascii, No point doing it for this eaxmple as I just made these values up randomly and proberly wont convert to a real value in the ascii table…