Eew. For each password, you tie a list of words using Tie::File at least twice - only to extract a single word each time. In order to do so, you have to read the entire file (if only to determine the number of lines). And you recurse if the word you pick is too long.

Please Note: I did mention something about that as being one of the weaknesses of the design. I would certainly come up with a better way if I were to use this in a "more permanent" fashion. I'm not sure that slurping all the files into memory is the answer either.