I generate my passwords manually based on phrases or songs I know. Then I randomly change letters to digits and mix between upper and lower case to make them harder to guess.
My password list is encrypted with gpg and kept on my USB flash-drive. GPG is installed on all of the boxes I use here (Linux and Windows) so I can just decrypt the password list when I need it.
I spend most of my time using the CLI here so I don't mind the typing that this requires. In other words, I don't know the equivalent gui tools for doing this...
