Default Password Encryption Lock Out

Few month ago found out there was a stock option for encrypting the data. After the process everything worked great. However, I decided to try out a different rom and rebooted to the phone into recovery mode. Come to find out it's also locked out by the encryption. First reaction was awesome, android got this on a lock down on all sides. Here comes the bad news. My normal encryption password does not work with the recovery encryption password. It keeps telling me I got the wrong password. It's seems I can't make any changes anymore.

I was wondering, what do you do in this case? I can use the phone as is for now but what if I want to update or sell my phone, what do I do? I can't even full wipe the phone for fresh new rom.
Nexus One (AT&T) - CyanogenMod