You could save yourself the hassle and use Membership.GeneratePassword method. It is essentially doing what you require.
Usage:
int passwordLength = 5;
int alphaNumericalCharsAllowed = 2;
string random = Membership.GeneratePassword(passwordLength, alphaNumericalCharsAllowed);
For readability aswell you could wrap this in a helper method:
private string GenerateRandomString(int length, int alphaNumericalChars)
{
return Membership.GeneratePassword(length, alphaNumericalChars);
}