Put your Passwords in your Pocket
If you sign on to a new website at work, you can ask your browser to remember the password. But that doesn't do you any good when you get home. And, that password is available and visible to anyone else who logs on to your work machine. Fortunately, you can secure your password cache and take it with you.
First you will need to get a USB thumb drive. You don't need a "secure key", since you will be adding the security software yourself. A large drive is not necessary either. I use a 32 MB drive that I got from the impulse lane of the grocery store, though it is a tight fit.
Second, download TrueCrypt. You don't even need to install the software on your PC. Just open the zip file and run TrueCrypt.exe from the "Setup Files" folder. Click "Create Volume", "Create a standard TrueCrypt volume", Next. Assuming your USB drive is "D:", enter "D:\portable.tc" and click "Next". Choose your encryption and hashing algorithms (I like AES and SHA-1) and hit "Next". Enter a volume size saving at least 1 MB for TrueCrypt (so my 32 MB jump drive has a 31 MB volume on it) and hit "Next". Now enter and confirm a password and hit "Next". (Do not use keyfiles for this procedure, and do not click "display password".) Now move your mouse over the dialog a few times to seed the random pool and hit "Format". When it's done, hit "Exit".
Third, install TrueCrypt on the USB drive. You should be back to the TrueCrypt window, so open the "Tools" menu and choose "Traveler Disk Setup". Again assuming your jump drive is on "D:", enter the root drive "D:". Uncheck "Include TrueCrypt Volume Creation Wizard" to keep TrueCrypt under 1 MB. Choose the option "Auto-mount TrueCrypt volume (specified below)". Then enter "portable.tc" without the drive letter or slash. Then click "Create", click "OK" on the popup, then click "Cancel" to close the traveler disk setup wizard.
Fourth, mount the encrypted volume. The easiest way to do this is to safely remove the USB drive (first using the "Safely Remove Hardware" icon in the system tray) and reinsert it. Alternatively, you can open "My Computer", right click on the drive, and select "TrueCrypt Mount". You will be prompted for your password.
Fifth, install Portable Firefox on the encrypted volume. Download the installer to your hard drive, run it, and enter the drive letter of the mounted encrypted volume (for example "E:").
For convenience, you may want to create a batch file on the root of your encrypted volume. Create a file called "Firefox.bat" containing the line "FirefoxPortable\FirefoxPortable.exe". Since you don't know what drive letter will be assigned, you have to use a batch file instead of a shortcut. This will allow you to double-click the batch file once you mount the drive, instead of drilling into the folder to double-click the exe.
To unmount the drive, right-click on the USB drive in My Computer ("D:" in this example, not "E:") and select "TrueCrypt Dismount All". Then use the system icon to safely remove the drive.
Now launch Firefox and start browsing. Go ahead and tell Firefox to remember all your passwords, safe in the knowledge that they are being cached to an encrypted volume. Take it with you to log in from any machine. You will leave no traces behind, and if your USB drive is lost or stolen no one can use it to get to your passwords.