Broken Login and Pass recovery

I am not able to log in to my wordpress installation.. i am not sure of password.. and the pass recovery is not working.. maybe it is because i changed my directory to subdomain but that happened long time ago but thats where some problems began from.. i DID successfully logged in after that a number of times..

i had a failed attempt to update to new word press 3 a couple of weeks ago and i am not able to log in since then..

i today tried updating again through cpanel and it now says that i have successfully updated to wp3 but the login still dosent work..

is there any way i could fix it..?? i would really appreciate some help over here..

and yes one more thing.. i have access to wp database.. so i thought i could change the pass through there.. i just wanted to know if it would be cool if i did so.. btw what hashing does wp use?? md5?? or sha1?? or anything else?? and does it salt the pass?? i could, maybe, hash my new pass (and the salt too!) and replace it with the one in my user table..
i have only one user that admin (me, ofcorse)

i just want access to my blog back to me plus if these errors could be fixed..