Convert a string to a byte array in PowerShell version 2
You most likely just need to convert your hash to base64 after the last line.
$enc = [system.Text.Encoding]::UTF8
$string1 = "This is a string to hash"
$data1 = $enc.GetBytes($string1)
# Create a New SHA1 Crypto Provider
$sha = New-Object System.Security.Cryptography.SHA1CryptoServiceProvider
# Now hash and display results
$result1 = $sha.ComputeHash($data1)
[System.Convert]::ToBase64String($result1)
Text->Bytes->Encrypt/Hash->Base64
That's a very common pattern for sending cryptographic data in a text format.
It looks like you're on the right track. You have to pick a character encoding to convert between a string and a byte array. You picked UTF-8 above, but there are other options (e.g. ASCII, UTF-16, etc.).
Encrypting a string directly is not supported.