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Are you using Windows 7 Ultimate? Try BitLocker!
http://en.wikipedia.org/wiki/BitLocker_Drive_Encryption
For a Free option try TrueCrypt...
http://www.truecrypt.org/
Hi Gary, i've installed TrueCrypt and mounted volumn to drive. I copied my important files there but when i open them no password is asked. How does this work exactly?
What encryption option did you use... and did you give it a password in the Wizard setup as per the tutorial?
http://www.truecrypt.org/docs/
Did it ask you for the password when you mounted the drive?
"Important: Note that when you open a file stored on a TrueCrypt volume (or when you write/copy a file to/from the TrueCrypt volume) you will not be asked to enter the password again. You need to enter the correct password only when mounting the volume. "
Thats my argument, once mounted then the volume is not encrypted. So if the PC is left running with volume mounted any person can still access the data.. Yes i chose a password and it does ask when mounting
OK but you can specify when the volume should be unmounted can't you?
And you should do that for every reboot.
So if the PC is stolen, then they would not be able to access the volume after booting up again.
As for leaving it unattended, that is more of a real world problem, than a software problem.
If you are concerned about that... don't leave your PC unattended or put a screen saver on with a password.
OK but you can specify when the volume should be unmounted can't you?
And you should do that for every reboot.
So if the PC is stolen, then they would not be able to access the volume after booting up again.
As for leaving it unattended, that is more of a real world problem, than a software problem.
If you are concerned about that... don't leave your PC unattended or put a screen saver on with a password.
last question, what happens when the volume file is corrupt? does that mean all the files copied to it are not mountable with different file/volume?
Yes, you should make offsite backups before doing this, and regularly after that.