I had been working on some new password pattern implementations in Axure to match some trends in password masking/unmasking based on something that Jakob Nielsen wrote entitled Stop Password Masking back in 2009.
There have been a number of blogs discussing this and other password masking/unmasking techniques, including that used by the iPhone, where the masking is delayed long enough for you to ensure that you typed the right character. Other sites, such as http://huffduffer.com/login/?login[redirect]=/ offer users a way of unmasking the password to display it in plain text.
While I was working on the iPhone one, someone posted to the Axure forums about the unmasking trick on HuffDuffer and so I threw that in as well.
This work is licensed under a Creative Commons Attribution 2.5 Canada License.