I just had an idea, does it make sense that you could confuse key loggers by when you are going to enter your password, enter the wrong password, then back space and enter the correct one. My theroy is that the key logger is just going to show all the key strokes, so it would be harder to know which of the two passwords are correct. Or is it more likely that whoever is using the key logger would simply use both the incorrect then the correct password.
Also, encryption wouldn't work would it? because encryption is only when sending a password, correct? For instance, could you encrypt keystrokes?