Error in mysql query?

[hooligan2001]

Hey guys/gals i have a simple login script in a flash file that sends a user name and password to a php script and the php script processes it and sends back a response. Now this doesn't doesnt find a user.

<?php
    include "conn.php";

    $username = $_POST['user'];
    $pass = $_POST['pwd'];
    
    if(isset($username) && isset($pass)) {
        $query = "SELECT * FROM members " .
                 "WHERE user_name = '$username'" .
                 "AND password = (PASSWORD('$pass'))";
        
        $result = mysql_query($query)
            or die(mysql_error());
        
        if(mysql_num_rows($result) == 1) { 
            echo "msg=hello $username we found you";
        }else{
            echo "msg=Invalid username or password";
        }
    }
?>

And this one does find a match when i ommit the password search?

<?php
    include "conn.php";

    $username = $_POST['user'];
    $pass = $_POST['pwd'];
    
    if(isset($username) && isset($pass)) {
        $query = "SELECT * FROM members " .
                 "WHERE user_name = '$username'";
                 //"AND password = (PASSWORD('$pass'))";
        
        $result = mysql_query($query)
            or die(mysql_error());
        
        if(mysql_num_rows($result) == 1) { 
            echo "msg=hello $username we found you";
        }else{
            echo "msg=Invalid username or password";
        }
    }
?>

All passwords are encrypted before they are stored using the mysql PASSWORD. So i was wondering if i have written the query wrong?