KeePass is a free Password Management Software, which helps you to manage your passwords in a secure way. Like most Password Management Software, this too have a password generator. I have been using this since its early beta and I liked it, infact this is my ultimate Password Safe and use it day in and day out. It recently reached its version 1.0 stable version.
KeePass allows you to put all your passwords in one database, which is locked with one master key or a key-disk. So you only have to remember one single master password or insert the key-disk to unlock the whole database. Besides many other features The databases are encrypted using AES and Twofish.