You only have the type one word correct, and they make sure one word is readable so with some practice you can easily recognise which word is the key-word.
Most software developers are under 40 and therefore have little to no appreciation for what happens to people's eyes after they are past 40.
If you'd like to see it you can usually get it by putting in a bad password to a gmail account too many times (though I don't know if that has other consequences).
Edit: Here is an image example http://www.techian.com/wp-content/uploads/captcha.png