TrueCrypt is a free, open source tool for creating encrypted hard drive partitions as well as virtual encrypted disks.
The cool thing about TrueCrypt is it offers tons of options that let you choose your level of paranoia. For example, for the really paranoid, TrueCrypt can create a hidden volume inside an encrypted volume, so even if you’re forced to give up the password to the encrypted volume, the hidden volume is still password protected and undetectable.
You’ve also got your choice of encryption algorithms including, AES-256, Blowfish, CAST5, Serpent, Triple DES, and Twofish.
My kind of software.
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