Puzzle game - converting binary numbers to decimal
Style

Please follow PEP8 conventions on naming: function names should be lowercase_with_underscores

On documentation: information on functions should be put below their definition in the form of a docstring, in order to allow programmatic access via help(function).

generatePassword

List comprehension

The explicit loop in generate_password is unnecessary, it is too long making the reader forget about the logic behind such function.

def generate_password_and_binary(n):
    """ A "password" is a list of length `n` containing random digits. """ 
    password = [random.randint(0, 9) for _ in range(n)]
    return password, [to_bin(digit) for digit in password]


This version with list comprehension is shorter and more to the point.

I also incorporated the comment into the function name (self-documenting code is better than code + comments) and added a more detailed docstring.

printPassword

I think your printPassword has a serious bug:

&gt;&gt;&gt; generatePassword(8)
([2, 1, 7, 6, 4, 5, 7, 3], ['10', '1', '111', '110', '100', '101', '111', '11'])
&gt;&gt;&gt; printPassword(_)
############
##        ##
##        ##
##  0010  ##
##  0001  ##
##  0111  ##
##  0110  ##
##        ##
##        ##
##        ##
##        ##
##        ##
##        ##
############


Only the first four digits where printed and the rest ignored.
This bug is probably a result of over-complication caused by indexes and comparison, while a plain for iteration over the collection is sufficient, here is a simpler (and correct!) way to write this function:

def print_password(binary_version): # No need to pass all password if only binary part is shown
    wall = "#" * 12
    spaced = "{0}{1}{0}".format("##", " " * 8)
    print(wall, spaced, sep="\n")
    for binary_digit in binary_version:
        print("{0}{1}{2}{1}{0}".format("##", "  ", binary_digit.rjust(4, "0")))
    print(spaced, wall, sep="\n")


Now all of the password is printed:

&gt;&gt;&gt; print_password(['10', '1', '111', '110', '100', '101', '111', '11'])
############
##        ##
##  0010  ##
##  0001  ##
##  0111  ##
##  0110  ##
##  0100  ##
##  0101  ##
##  0111  ##
##  0011  ##
##        ##
############