I'm Sam, the creator of Bippy.
First off, thanks for the interest and kind words. It's always very nice to hear compliments of work that I've done.
Bippy had a bit of an update since this original post. I added some functionality and prettified the UI a bit to make the flow easier. It also now has Windows installers available on the Bippy website here: http://bippy.org
The encryption method followed by Bippy is the exact one laid out in the BIP0038 specification. That does make use of AES as jonald_fyookball mentioned as well as using scrypt for key derivation. Bippy uses a pre-compiled binary version of scyrpt as the pure python implementation meant waiting ~10 minutes for encryption rather than ~10 seconds. If that's a cause for concern you an always compile your own scrypt binary as there is nothing special about the one bundled with Bippy.
I tweaked the BIP0038 specification slightly to allow for some other inputs other than private keys, but the underlying method remains the same.
The Private keys generated by Bippy use three entropy sources. There are the Operating system urandom pool, the clock based entropy and user entered entropy (the bot where you draw the dots over the UI). All told, it's as secure as the browser based tools such as BitAddress.org but doesn't rely on a browser with its associated cache. I know that browser tools recommend going offline to generate and to clear the cache after generating keys but, browsers contain thousands of lines of code. I myself haven;t been through that code to check what happens when I clear the cache to ensure that every last trace is cleared.
I'd recommend generating keys and addresses offline with Bippy too but the big difference is that there is no cache in Bippy. (I'm in no way trying to imply that browser based tools are unsafe, I'm just clinging to the one unique selling point I have
![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
Happy to answer any other questions that may come. I hope to update Bippy one day, perhaps to support BIP0032 and HD wallets but I must admit that this is no longer my primary concern.
Sam