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Rainbow tables reduce the difficulty in brute force cracking a single password by creating a large pre-generated data set of hashes from nearly every possible password. Rainbow Tables and RainbowCrack come from the work and subsequent paper by Philippe Oechslin. The method, known as the Faster Time-Memory Trade-Off Technique, is based on research by Martin Hellman & Ronald Rivest done in the early 1980’s on the performance trade-offs between processing time and the memory needed for cryptanalysis. In his paper published in 2003, Oechslin refined the techniques and showed that the attack could reduce the time to attack 99.9% of Microsoft''s LAN Manager passwords (alpha characters only) to 13.6 seconds from 101 seconds. Further algorithm refinements also reduced the number of false positives produced by the system.

Source: http://www.windowsecurity.com/