In CED, the standard product does not have an option to encrypt the password of the operator user in the web.xml
In AAD and AIC portal, since 7.3.1, you have the ability to encrypt usernames and passwords used to configure access to database resources and Active Directory LDAP servers. The process is documented in http://doc.castsoftware.com/help/index.jsp?topic=%2F73x%2FEncrypt-login-and-password-for-datasource-and-Active-Directory_574750895.html
Java 1.7.0_21 does not fully support JNLP on Windows 10. The problem can be fixed by installing JRE 1.7.0_79.