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I'm using KeePass 1.04 for some time now, and I think it is a great program! Everything works fine and I keep copies on floppy, zipdisk and USB stick.
One thing is puzzling me though... I really can't grasp the difference of the options 'password and/or a key-disk'. Although I have read the help file on this, I can't get my brains around the intention of the concept.
Can any one give a try to explain from another approach?
The key file is a random 64 character long hexadecimal password chosen by KeePass.
This is unlike the user provided password which can be longer and contain other characters and symbols.
The key file behavior can be thought of as similar to writing down your password on a piece of paper, leaving it next to the computer and not memorizing it. You can easily access the paper or pwsafe.key file but if you lose it or it gets damaged, your password is gone. Unless, of course, you keep a backup copy.