During the testing of Windows 7, I noticed that the password manager I was using worked perfectly. This is Roboform.
Honestly, there are simply too many password to remember these days and changing all of them to a few similar ones is highly not recommended either. Therefore the user of password manager is one of the way to go about keeping track of your thousands of passwords.
Roboform offer both free and pro mode. There is a limit to the number of password you can store in the free mode. However, once started, I find myself hard to pull away from this. In fact I rely so much of this for many of the complex passwords. Roboform also offers a runtime only portable version in U3, USB portable application, portableapps, Windows mobile etc. This makes the password database portable to my many devices. Oh, of course the password is stored encrypted as well.
Roboform has been tested working in both IE8 and Windows 7.