Henny Penny
I work in the area of IT security, and while I may be sticking my neck out here for it to be chopped off, I have to strongly agree with Clubman on this. I do find the story hard to believe.
Simply knowing the IP address of a server does not imply it is insecure. It is quite simple to get the IP address of any website, it is no secret. Your IP address is simply the equivalent in the IT world to your phone number in the real world.
If your network, web server or host, is not secured or managed properly then it is possible to break into it. However, if it is protected by proper protection devices such as Firewalls, Intrusion Detection Systems and it is properly patched and managed, then it will be much more difficult to attack. Similarly if your house has proper locks on the the doors and windows, a burglar alarm that alerts you when it goes off, etc. then it is going to be difficult to break into. While there is no such thing as 100% security, by making your systems/house more difficult to get into than your neighbours you increase the chance of the bad guys moving onto an easier target.
Regarding the passwords on Mr HPs network, especially those of ones that had been removed from the system. This points to me that Mr HP's network is not managed properly and that their administrator needs to go on a security training course. If Mr HP can get that information then he is not the only one and his company's information is under threat. Indeed they company may be in breach of various regulatory and legal obligations, and they should remedy the situation ASAP.
No matter where your server is hosted you should make sure that you are satisified with their ability to secure your server. The above companies, be that in China, India, Ireland or the US would not be in business long if their customer's websites are easily attacked.
Finally just to reiterate what another poster said, a cracker in IT security parlance is the bad guy while a hacker is a good guy and someone who uses their skills and knowledge for the better. However the media have used the word hacker to such an extend now that it is associated solely with the world of breaking into systems.
Regards
C