This means that the hash_update function is being defined more than once. Try using require_once rather than require, or include_once rather than include
Ideally, you're meant to store the username and password in a file outside the webroot (eg. /home/[username]/db-settings.php or similar), and then use a require statement to grab the username and password
<?php ?>, not <?php php?>. People usually use <?php, becuase <? is also used by XML. The <script language="php"> tags are not recommended to be used, and are only really useful for editors that delete <?php ... ?> tags (eg. FrontPage). As far as I know, they are removed in PHP 6 (currently in beta).
To an admin: Probably best to check /usr/local/apache/conf/httpd.conf for PHP configuration, or try run /scripts/easyapache to recompile it