PasswordSafe 3.0 weak random number generator allows key recovery attack

[Markus Jansson <seemyhomepage () katsokotisivuilta ni>]

I wonder why havent anyone posted this one here yet?!? Concidering the 
fact that Password Safe is used to create and store users secure 
passphrases in one database, the compromise of this database could be 
horrible...therefore I see this attack/bug also as horrible.



http://www.securityfocus.com/archive/1/428552/30/0/threaded
"Title : PasswordSafe 3.0 weak random number generator allows key 
recovery attack
Date : March 23, 2006
Product : PasswordSafe 3.0
Discovered by : ElcomSoft Co.Ltd.
...
PasswordSafe 3.0 utilizes two different random number generator (RNG)
functions: Win32 API RtlGenRandom() and standart Visual C++ rand().
RtlGenRandom() is not available on Windows prior to Windows XP (i.e.
Windows 2000, Windows NT, Windows Me) so rand() is used instead.
Specifically, rand() is used to generate 256-bit database encryption
key. It is widely known that using rand() in cryptographic
applications is not secure due to its predictbility and small
internal state.
...
It is possible to mount guaranteed decryption attack on PasswordSafe
3.0 databases created under OS prior to Windows XP. The attack is
very simple:
1. Generate 256-bit key for every possible seed value
2. Decrypt first database record (the structure is documented, so
we have known plaintext attack)
3) Check decrypted value against the known plaintext
...
The total number of all possible seed values is limited by 2^32, so
it is quite feasible. Our experiments show that the key can be
recovered in less than 6 hours on the single PC (Pentium 4)."



Can anyone confirm
1) Is version 2.xx also vulnerable (either on XP or other OS)?
2) Password Safe has ability to create secure passphrases, are they too 
insecure because PRNG is insecure in PSv3?
3) Is there a fix available?
4) Is there a more secure password manager solution available? ;)

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