The way I create passwords is to make an algorithm that no one else would know - which creates unique passwords for every site I use, but I can never forget the password since the algorithm stays the same. Example:
initials + last 3 characters in domain of site + year of birth + random sequence you know.
my + tor + 91 + e72BQo -- HN
my + igg + 78 + abwBs$ -- Digg
Again, just examples. It works for me and I never forget my passwords as long as I remember the algorithm.
I think I read about this hashing technique here and have been using it ever since. There's no need for any password tools and you simply remember one algorithm. After about a month of usage it takes no time to type in the PW for any site.
I designed mine to be a little more mixed up, so hopefully even if someone intelligent got my password it would just look like an assortment of characters instead of an obvious hash.
initials + last 3 characters in domain of site + year of birth + random sequence you know.
my + tor + 91 + e72BQo -- HN my + igg + 78 + abwBs$ -- Digg
Again, just examples. It works for me and I never forget my passwords as long as I remember the algorithm.