Has anyone thought about using something like Truecrypt to lock down a
VM image and only use the VM to do sensitive work? If anyone has, does
this work well?

Technologically this sounds good.

However how are you going to force your users to do all their
sensitive work frm the vm session?

One possible answer is to DRM protect all the sensitive information so
that it is stuck one particular platform ;-) It is a joke.... :)

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