Don't overly like.

Off the top of my head: -

DECLARE @caps VARCHAR(24),

@lower VARCHAR(25),

@numbers VARCHAR(8),

@string VARCHAR(250)

SET @caps = 'ABCDEFGHJKLMNPQRSTUVWXYZ'

SET @lower = 'abcdefghijkmnopqrstuvwxyz'

SET @numbers = '23456789'

SET @string = @caps + @lower + @numbers;

WITH pass_cte (the_output)

AS (SELECT Substring(@caps, ( Abs(Checksum(Newid()))%Len(@caps) ) + 1, 1)

UNION ALL

SELECT Substring(@lower, ( Abs(Checksum(Newid()))%Len(@lower) ) + 1, 1)

UNION ALL

SELECT Substring(@lower, ( Abs(Checksum(Newid()))%Len(@lower) ) + 1, 1)

UNION ALL

SELECT Substring(@numbers, ( Abs(Checksum(Newid()))%Len(@numbers) ) + 1

, 1)

UNION ALL

SELECT Substring(@numbers, ( Abs(Checksum(Newid()))%Len(@numbers) ) + 1

, 1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1)

UNION ALL

SELECT Substring(@string, ( Abs(Checksum(Newid()))%Len(@string) ) + 1,

1))

SELECT TOP 1 (SELECT ( CAST (the_output AS VARCHAR(8000)) )

FROM pass_cte s2

FOR XML PATH('')) AS the_output

FROM pass_cte s1