Thanks for that interesting post.
In answer to your question, the salt that I'm using is a meaningless mixture of letters and numbers (not just letters). The salt string is randomly generated by a simple PHP script that I recently wrote. The salt generating script not only generates numbers and letters randomly { using the rand() function }, but it also generates the length of the string and the positions of the letters and numbers randomly.
I also have a few other tricks up my sleeve that I have been using, but I'd rather not discuss that kind of stuff on a public forum. One thing that I've learned since coming to this forum is that simply having your stuff stored on SSL is not good enough (apparently by a long shot). So, on a more positive note, I kind of feel lucky and at a slight advantage for at least being aware of some of the risks.
The book you've mentioned sounds like a beauty (I've heard a few people recommending it). Funnily enough, I was in a large bookshop a couple of weeks ago trying to find it, but I completely forgot the name and ended up being a MySQL book instead. Aaaaaaargh!
I'll probably go back to the bookshop on Saturday to have another look for it.