I commented out the jack and deskshade stuff and replaced it with code that activates lock on screensaver and then starts the screensaver. then to unlock i have it hit enter, type my password, and hit enter again. works perfectly. there might be a better way where you access a saved keychain password, but that seems extra complicated...

and yeah snow leopard fixed the security hole where you coule applescript deactivate password requests... which is a good thing in my mind!