mm, but how would the password selection be set? I mean...if it was truely random, all you'd have to do is close/restart the application or whatever requested the password, until it got to a number that they knew/where told by someone? Unless you had a HUGE list of passwords/numbers? But it's still possible, "close/open/close/open/etc".
And if you have high speed Inet, you can set up your own server (apache is good!), with php & mysql fairly easily...and "serve" them right off your computer...then do all the protection you said, with ease. But other than that, I still don't see the CD working! :-/