test1234@example.com and tets1234@example.com yield the same background colour. Isn't the point of this to detect accidental transpositions? You may want to use a simple hash in your algorithm.
The input field may need some explanatory text to alleviate the user's astonishment as to why the field is cycling colours in the first place -- it's a very unusual UI quirk.
Also, I suspect your colour palette is not friendly to the colour blind.
Edit: This is reminiscent of Lotus Notes' password hieroglyphics and Chroma-Hash: http://foxxtrot.github.com/Chroma-Hash/. The latter has been discussed on HN several times.
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Also, I suspect your colour palette is not friendly to the colour blind.
Edit: This is reminiscent of Lotus Notes' password hieroglyphics and Chroma-Hash: http://foxxtrot.github.com/Chroma-Hash/. The latter has been discussed on HN several times.