What is the difference between an encrypted password and a shadowed password?

An encrypted password is just the real password scrambled and changed. It can be cracked with a password cracked and a word file. A shadowed password hides the encrypted password somewhere else other than the etc. dir.

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What is a shadowed password?, how to Crack it..?

A shadowed password is a cover for the real password file. It shows that the real password is hidden somewhere else. Cracking a shadowed password file is impossible. Assuming that you got the password file via anonymous ftp. You should try connecting to port 25 and doing the sendmail bug.