Thank you EggSurplus.... I gave that a try, and checked the syntax about for times without any joy... obviously I did something grostesly incorrect.
None-the-less, I crudely solved the problem another way. I created a php file called "syncpasswords.php" and it's called every time a user changes their password on the joomla "your details' form, using a php include.
Code:
<?php
$joomlauser =& JFactory::getUser();
$joomlahpass = trim(strtolower(md5($joomlauser->password)));
$query="UPDATE users SET user_hash='$hpassword' WHERE user_name='$username' ; ";
$passs = mysql_query($query);
mysql_close($dbh);
?>
What the above does is take the joomla hash and re-hash it and shove that re-hash into sugarCRM as the hash, rather than the password. Since sugarCRM uses md5 to create a hash from a clear-text password passed on the URL or the login form (by chaing $_POST to $_REQUEST in the appropriate places of course), this works fine.
This method would open security issues for a publically exposed SugarCRM, which ours is not - it resides on a private server with no internet access whatsoever.
Since the user's URL bar/window/area is hidden, they cannot see what is passed and neither can someone looking over their shoulder. They click, and magically Joomla disappears and Sugarcrm appears.
Nifty 
Anyway, thank you for your help folks, very much appreciated.... BTW, we also did this for "webERP", our accounting package, and it works in the same manner just fine.
The key is to have Joomla update the various databases for other packages right after it updates the password in it's own database, expanding on the code above.
And, less modification to SugarCRM code meaning upgrades are that much easier.
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