> If it could touch on making encrypted loop back files too 
> (say a file on a hard drive or USB pen drive) that
> would be good.  I'm sure it would certainly be interesting 
> for those users who have sensitive documents on?
> their computers (who may be moving over from the likes of 
> Windows XP Home which doesn't support encryption as
> far as I'm aware).

You can get halfway there with TrueCrypt, but it has to be sorted before
anything that depends on the files is loaded.

 - http://portableapps.com/node/239 for a view

However TC requires run as an Administrator on the computer you are on, as
it loads its self as device drivers. 

Also saw this http://www.richskills.com/products/7/freeversion.asp, not sure
what it is...



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