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I need to encrypt and decrypt the user email and password at fetchmail.server

To do so I thought of using auth_crypt module to encrypt the password but i couldn't find how to decrypt using auth_crypt.  So, how to decrypt using auth_crypt module.

Also, I need encryption/decryption module that are supported by Odoo 8 (preferably github)

P.S: I have already tried using AES encryption/decryption at python (http://www.codekoala.com/posts/aes-encryption-python-using-pycrypto/).  If no module is available for Odoo, then I could start using AES algorithm itself.

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I don't think auth_crypt is designed for decryption but rather to generate hash of password, which should be sufficient for authentication.

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You can use following module for password encryption. https://www.odoo.com/apps/7.0/auth_crypt/