Password Safe allows users to store all passwords in a single "safe" (password database), or to create multiple databases for different purposes (e.g., one for work, one for personal use). Each database is independent can be moved and used on different systems, as long as the same version of Password Safe is installed. Databases are encrypted with an encryption key derived from the master password (the master password, however, is not kept in the database in any form).
If you are using Password Safe for the first time, press the New Database button. You will be asked to choose the name and location of your password database (the default, "pwsafe.psafe3", is fine). Afterwards, you will be prompted to enter a master password that is used to encrypt and lock the contents of your new safe.
There are two ways that a new database can be created. By clicking New Database from the Safe Combination Entry dialog when the program is started, or from the "File → New Database" menu once Password Safe has been opened. Using either method causes the Safe Combination Set Up dialog to appear.
To setup a master password in a secure way, you could use character (e.g. on a German keyboard)
as ä, ö or simular. To realize the input of such characters, you would
need a foreign keyboard. Such a keyboard is available as a virtual keyboard. This keyboard
is then used to simulate all available foreign characters. The virtual keyboard can be shown
by pushing the symbol .
Foreign characters, that are not available at the physical keyboard, can be put in in this way.
So you can build your desired master password. Even pieces of the master password can be build this way.