Ever since I discovered PasswordMaker.org, I’ve been recommending it, especially in my cryptography trainings. What it does is take a hash of your super secret password with the url of current site and creates a password. Your super secret password is never transmitted, and since the hash is secure, it cannot be reversed to your password. So each site has a different password, so if any one of them is compromised, then you only need to reset that one password.
Joel was looking for a solution to his password storage and syncronization issue over at StackOverflow. So I sent him an MP3 quote and they played it on their podcast. Joel liked the solution, Jeff not so much, but his solution is to just memorize a few passwords.
Their podcast is hosted by IT Conversations now. They played at 57:14 – The audio quality isn’t great.