Pwdhash is an interesting solution for password vulnerabilities: as you are tempted to use the same password on every site, a hacker might hack (crack) a low-secured website and try the stolen passwords on sites like eBay. Pwdhash is a firefox plugin that scrambles your typed password and uses it as a new password. The user can use the same password (if he wants to), pwdhash makes it unique. I wonder if a cracker that understands this might be able to reverse engineer the password, but still, you might want to consider pwdhash.

A similar solution is GenPass and SuperGenPass.