[citation][nom]koga73[/nom]I don't think its a good idea. I don't trust any of my passwords to anybody or any application. I enter each one of my passwords each time it is needed. This is one way I stay secure. On top of that I have separate passwords for everything. How do I remember them you ask? No I don't have a file called "passwords.txt"... I'll share my secret as it might help others.I started with a strong "base" password that I could remember (resistant to brute force and dictionary attacks). Then I use this password for pretty much everything, and salt it with what I'm using it for... so for tomshardware I might have "T" + base pass + "E" (first and last letters from url). This way I can always remember, or at least figure out, what my pass is. Plus since each password is slightly different if one is compromised the others won't be![/citation]
In general this is the best advice considering most people use very, very weak passwords, but the problem with this method is that if a hacker is able to obtain one password it wouldn't be too difficult to get every other password you use. Even if simply guessing doesn't work, they could enter in the base password and should be able to get the rest of the password fairly easily.
Typing in your passwords also exposes your passwords if you have a virus/trojan with a key logger. With KeePass, (and I'm sure there are many similar applications just as good), I never type any passwords. You can either manually copy and paste it over, or just hit ctrl + V and it'll copy and paste over both your username and password.
Again, not saying that's a bad idea, definitely better than using weak passwords or writing them down or in a text file (lol I'm sure some are reading this thinking, oh crap), but KeePass is open source so if a flaw is found it should be corrected fairly quickly.
I think with the combination of requiring a strong password as well as a key file secured on a password protected (different password obviously) on a thumb drive this makes this much more secure than others. But of course, you never can be 100% sure.