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Thats pretty neat since you have of the encryption done client side. Which mode of AES do you use?

I use counter mode with 256 bit key Key is generated as sha256 hash of the user password

That's also not a secure way of generating an AES key; those crypto keys can be cracked quickly. The problem you're trying to solve is the entire reason for PBKDF2.

You should also use SJCL's AES.

You should also use SJCL's AES.

Here's the link: http://bitwiseshiftleft.github.com/sjcl/

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