So it's ok for me to create and import all my users now with a CLEAR password?
The password now will be created with the bugged password field. After the release of 5.0 where the fix is added, all new users will have their passwords properly saved. The already created user will have their password fields reman the same. To fix their password fields an update of the password will be needed, change password or edit the column by hand and delete the hash version in SQL management studio.
Is the bug only visual in the database but not a big deal behind the scenes?
Yes there is no problem concerning the user`s abiliti to login and use the CMS.
Will the 5.0 upgrade continue to work with any current users I create?
The current users will be working