Got an email from VUDU about this, several things were stolen form their offices, includes hard drives:
"Our investigation thus far indicates that these hard drives contained customer information, including names, email addresses, postal addresses, phone numbers, account activity, dates of birth and the last four digits of some credit card numbers. It's important to note that the drives did NOT contain full credit card numbers, as we do not store that information. Additionally, please note if you have never set a password on the VUDU site and have only logged in through another site, your password was not on the hard drives.
While the stolen hard drives included VUDU account passwords, those passwords were encrypted. We believe it would be difficult to break the password encryption, but we can't rule out that possibility given the circumstances of this theft. So we think it's best to be proactive and ask that you be proactive as well."
As is the case in almost every password breach, it would be nice to know exactly how they "ecnrypted" the passwords.