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Truecrypt
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For anyone who wants to protect their data from being read by anyone, Truecrypt might help.

Essentially, it creates a very large file, which you can specify. (I created a 40gb file, which means you can store 40gb of data, took me 6 hours on lowest encryption rate)

After you've created the file, you can use truecrypt to load the file as a drive, works the same as you can use daemon tools to make a ghost-drive..

You can then copy the files to that drive, and unmount the drive.. the files will remain in the encrypted file you've created, but can't be accessed by anyone unless they use truecrypt to mount the drive again. This can be password protected, or even only be accessed by using a encryption key which you can generate using truecrypt itself.

Be careful with this option though, if you accidentally lose the decryption key, there's little chance you will ever be able to access your stored files again, so I'd recommend just going for password protected..

http://www.truecrypt.org/
  




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