Gavin Andresen - 2011-06-05 21:52:50

The current plan is to password-protect private keys in the wallet and unlock them when coins are sent (with an option to 'remember the password' for a certain period of time) for the 0.4 release.

That doesn't completely fix the problem (a keystroke logger can get your password, and a virus can insert itself so instead of sending 10 BTC to your grandma in Boise it makes bitcoin send your entire wallet balance to Little Bobby Blackhat).

To almost completely fix the problem transactions would need to be created on one device and then verified on a second device.  Assuming both devices aren't infected/compromised, that will be safe. The two devices would be your computer and something else-- maybe a website, If anybody has experience with that type of cross-device security/programming and is interested in helping Bitcoin out, help would be much appreciated.