System Administrator's Guide/Moodle//Mahara Integration
The integration between Moodle and Mahara has been affectionately named "Mahoodle". It allows true single-signon between both systems - no password sharing required, and users' profile information is ported across. In addition, from Mahara 1.2, users are able to submit Mahara Views to Moodle for assessment (with a plugin for Moodle).
More up to date instructions and screenshots are available in the mahoodle-updated-en.odp and mahoodle-updated-en.pdf files attached to this wiki page. You should also read the original Mahoodle file to get more detailed explanations about the whole process.
You can also take a look at Aarif's step-by-step instructions.