I was thinking about password alternatives recently because I was designing a website just for friends and family. I wanted enough security to keep out strangers on the Web, but I didn't want to make people I know memorize a lengthy password.
So I came up with a photo that fills up the screen. A small, invisible grid covers the photo, and the user has to click the image in a special sequence in order to unlock the next image. After a few quick rounds, they open up the content.
I realize that it isn't the most secure approach, but it's much easier to memorize and use than a traditional password (not to mention more fun). If anyone has any advice or interesting anecdotes about visual login systems, I'd be interested in learning more about them.