Due to hdd led activity when using Ubuntu LiveCD, I simply pulled the hard drive out of my laptop and then booted to successfully manage my bitcoin business.
Installation of bitcoin, p7zip and apg password generation software went smoothly, although Ubuntu started to complain about memory (4Gb) running out as the block sequence database was filled, although everything worked in the end

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In my case, p7zip (available from Ubuntu software center) is used for making a password protected .7z-archive, e.g. 7z a -p archivename.7z wallet.dat to add the wallet to a password protected archive. This archive, and password, is now duplicated, fireproofed and stored separately close by and far away.
As for password generation, apg (
sudo apt-get install apg
) is being used to generate a sufficiently random password of chosen length. Here I am using something like
apg -s -a 1 -m 14
, where -s lets me randomly type on the keyboard before generating password, -a 1 means I want a non-pronounceable password and where -m 14 means I need a password containing 14 characters.
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