Before considering how to make it happen, first decide
what you want to happen. For me I think that would be:

The PC has two security states: Open and Closed. At bootup
it is always Closed.

To switch from Closed to Open, you have to enter your
Master Password. Although you have many passwords (for
dialup, for various websites, etc) you only need to
remember the Masterpass.

To switch from Open to Closed should be made very easy,
no password required. Have a manual method, such as
clicking a tray icon, or a hotkey, and several auto methods,
such as after system is idle for n minutes, whenever the
screen saver happens, plus maybe a simple fixed time of
n hours. Each user can decide all those things individually.

As someone who knows nothing about encryption or writing dlls
I would do it like this:
Store all passwords in one .ini file. Every script or command
which requires a password fetches it from the same ini file:

[passwords]
Dialup = mydialuppassword
YahooGroups = myyahoopassword
etc

Encrypt the file any way that's easy, such as a password protected
zip, using your Masterpass. When you wish to be in the Open state,
unzip passwords.ini (use a less obvious filename if you prefer)
always to the same path.

When you dial, instead of using a command with a literal password
like this: dundial other-parameters password
use the command: dundial other-parameters &(ini.get,etc,etc).
I'll leave you to work out a better do() statement.

Do a similar thing with every other command which uses a
password: use do( ... , ... , (ini.get(passwords.ini,etc))

That will only work when passwords.ini exists,
and passwords.ini only exists when you have chosen to
unzip it with your password.

The various methods for changing from the Open to Closed
state simply delete passwords.ini. In the Closed state,
only the zip file encrypted with your master password exists.

Write your scripts sensibly so a global or static variable
is never set to a password retrieved from passwords.ini.

As a safety precaution (in case a power failure means that the PC
is switched off while the ini file still exists) make a very early
startup item which deletes passwords.ini if it exists.
In XP that could be in
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\WindowsNT
\CurrentVersion\Winlogon\Userinit
because I think that is the first of all startup events, even
before anyone has logged on - works for all users including admin,
default, etc.

The nice thing about the system described above is that every
competent PowerPro user can design their own variations of it.
The variety of individual implementations makes it more secure.



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