I have been using a Firefox addon called passwordmaker for a few years. It hashes a 'master password', that you keep in your head, along with some salts (domain name, prefix modifiers ...) and generates passwords using a list of characters.
So the password is never stored in any format. If someone were to grab the password configuration they would still need to know your 'master password', which being a single/often used password should be easy to remember even if it is complex.