<p>I need to generate some passwords, I want to avoid characters that can be confused for each other. Is there a definitive list of characters I should avoid? my current list is</p>

<p>il10o8B3Evu![]{}</p>

<p>Are there any other pairs of characters that are easy to confuse? for special characters I was going to limit myself to those under the number keys, though I know that this differs depending on your keyboards nationality!</p>

<p>As a rider question, I would like my passwords to be 'wordlike'do you have a favoured algorithm for that?</p>

<p>Thanks :)</p>

My preferred method is to get a word list of 3, 4 and 5 letter words.  Then select at least 2 of those, and place a random 2 digit number or special symbol (%&*@#$) between each word.  If you want to you can capitalize up to one character per word at random.
Depending on your strength requirements you end up with easy-to-remember and communicate passwords like:
lemon%desk
paper&boy32hat
Keep in mind you occasionally get interesting or inappropriate combinations of words (I'll let you use your imagination).  I usually have a button allowing the generation of a new password if the one presented is disliked.
As a rule, only use symbols that people commonly know the name for.  On a US Standard keyboard I would avoid ~`'/\^
I guess this more answered your rider question than your main question . ..
Good luck!