Wow, this is the first time I've been hacked before.
Someone in Asia hacked into my iTunes account and bought over $100 worth of Hong Kong apps.
I immediately changed my password and reported it to Apple. I'm hopeful they'll give me a refund, if not I'll try to dispute it through PayPal.
BTW: The best passwords by far are phrases. These are almost impossible for a program or person to guess. For example, if you used the password:
I <3 theOtaku
It's not only super easy to remember, but you're pretty much guaranteed to be safe with it.