KeePass. I've been using it for quite awhile. You need to manually sync between the phone and the desktop, but it's very flexible and portable.
KeePassDroid is the name of the app in the droid Market.
May be dumb question but how do you manually sync? I've downloaded on Android and on PC but cannot figure out sync?
You manually sync by copying the database file that you initially setup on the Pc down to the Droid via the USB sync cable or possibly WiFi if you have a file manager installed on the Droid.
If you make changes on the PC, then overwrite what is on the droid. If you make changes on the phone, then overwrite the file on the PC.
Works great for me, but I am not constantly making changes to my passwords.