The Webcogs online password generator works by reading a database of 57242 English words in real-time. It looks for a word that is between 5 and 8 characters in length and then performs some translation on the letters (whilst trying to keep the word at least semi-pronouncable!).

Finally, the generated password is compared with all of the words in the dictionary to ensure that it isn't a real English word and a number between 1 and 99 is added to the end for additional security.

http://www.webcogs.com/passwordgenerator.aspx