If you concatenate your password and a salt, then iterate a cryptographic hash like SHA256 a few thousand times, this is almost exactly PBKDF1. It's a good, respectable password hashing scheme. The main advantage that PBKDF2 offers is the ability to produce arbitrary output sizes.

(The difference between this and PBKDF1 is that PBKDF1 requires using either MD2 or SHA1 as the hash function, and hasn't been updated to reflect the availability of SHA-256 and SHA-512.)