All the passwords together with other login information are encrypted and stored in a file ("Local Storage") or on the servers of LogOnce ("Remote Storage").

There is always a risk when it come to passwords. the question you need to ask yourself is "do the way I use passwords today is safer ?". 
If you choose a good password that is hard to guess as the one you remember , it will be impossible to crack down the information that is stored in the file.
also you may choose to use LogOnce for less sensitive data and keep your bank password in your head, it is your choice! 

If you use the "Remote Storage" option, the information is available for you from every computer.
If you choose the "Local Storage" option,You can take the file with you on portable media (like DiskOnKey). The secured information file is very small ( about 5 ot 10 KB). 

There is a big difference .

1. Internet Explored will remember this information for you on a specific computer, you cannot take this information with you to other places:  work, abroad, internet cafe etc... . with LogOnce you can take it easily anywhere
2. Internet Explorer will complete the information for you even when you don't want. Usually more than one person use the same computer at home , so what user uses the e-mail ? do you want your mother , son or brother to automatically enter your acount when going to GMAIL ? with LogOnce every one has its own account and password so you are safe !

LogOnce business model is not based on getting money from selling the basic PC software. 
Only advanced services when introduced might be available for small fee.