Mrs. Palin's recent experience with online privacy has given many a reason to be paranoid. Many of the standard practices on the Internet today only opens us up to security and privacy woes.
Even though passwords are very 2005ish and not considered the main defense line as they once were, they still are usefull and using them well should still be known. I have over 200 passwords which could be a nightmare to maintain but I have tamed them to the point where I am able to keep them secure and easy to use.
Everybody has a different way of doing this. Here is mine.