Let's step back a little. Addressing only your password security is like focusing on security for a single jail cell without considering the perimeter, etc.
Security is best implemented as a system, not as an item. There are many simple, inexpensive, easily maintained practices and solutions worth considering. In the I.T. world, taking a system wide approach to security is called ''layered security''.
A note - even if you have nothing on your computer that would cause you any worry should it become public, security is still very important - especially if you use a broadband connection. This is due to the ease at which files can be surreptitiously installed on a computer.
Your computer can be remotely controlled to attack other computers. This will cause financial and/or physical harm. This isn't an ''if'' scenario, but a ''when''. The FBI released a very informative pamphlet on this several years ago. So, just because you're paranoid doesn't mean they're not out to get you.
If you're seeking simplicity and security, I would look at combining a good biometric device (I like Targus); a light resource consuming encryption dongle (BeyondIf Solutions does a great job with this) and if you're using an operating system capable of supporting it, use NTFS instead of FAT formatting on your hard drive. NTFS is both a more robust file system and you can (and should consider) activate encryption.
These are the benefits:
1) You can use incredibly complex passwords without having to memorize them. You can store them on anything from a piece of paper to a flash memory device and simply hide it well.
2) A well designed encryption dongle will add tremendous security - even to the point of encrypting the file in which the biometric password is held (this is an important point).
3) NTFS can encrypt your data as well - and it does a fine job.
So now, properly setup, you have coverage if you walk away from your PC and it's on, because sensitive documents will require your thumb scan and, if you have good habits, the dongle will be with you as well. But, we're human and that is why I suggest the belt and suspenders approach.
Should someone hack their way into your computer, the data is encrypted using the NTFS and the dongle. It's unlikely they have either of your dongles. Even if they do, they'll most likely require the thumbprint and getting through NTFS encryption isn't a picnic. So even if they have Admin rights and your dongle, it won't make their job easy, because they?ll need your thumb?
Finally, should your PC be stolen, you'll still have little to be worried about unless they steal you and the dongle. In that case, your computer is probably not going to be at the top of your list of concerns.
All that covered, there are best practices you should have in place: I suggest using both a software and hardware based firewall (remember layering?). Make sure at least one, preferably both, monitors outbound traffic!
Naturally, be sure your anti-virus, spyware and operating system software are updated regularly - I set mine for daily checks and automatic download/installation - the OS is only set to download as I prefer to determine when and if the installation will occur.
Also, you could download and install Sun Java and disable the Microsoft Java through Internet Explorer. Sun Java is considered to be more secure. My experience has been that it has been necessary to temporarily activate the Microsoft Java, perhaps once every year or two. That's easily accomplished through the browser tool settings.
Because hacking often can result from an unintended or unknown download, be wary of free downloads - even images! Also, I prefer to use Internet Explorer at a customized level between medium and high and only for well known sites (such as this). If I'm going to go searching into parts of the Web unknown, I use Mozilla with the highest security; it?s set to delete everything after the session ends. There are other browsers, but I don't want to worry too much about compatibility issues.