How to Use the Windows Encrypted File System
Found a good article at About.com on how to use the Windows XP Pro Encrypted File System. (XP Home does not include the EFS).
It never ceases to amaze me that critical data* is kept on computers without the used of encryption, especially when the data is on a laptop, or other vulnerable computer system. There really is no excuse other than ignorance and carelessness.
* Hey, especially if that computer contains any personal data about other people, not just your own, it is irresponsible to keep any such data in an unencrypted form.
The Windows EFS may not be the pinnacle of encryption technology, but it is much better than nothing. It is easy to use, and that is one its best features. The article in About.com also explains how how to secure and backup the encryption key.
Using Windows EFS (Encrypted File System)
If you want a little more functionality or if you have XP Home, you might also want to take a look at the popular program, Folder Lock. A little cutesy, but solid. We definitely like the idea of encrypting folders, vs. encrypting files, especially since most encrypting programs expose the file name and sizes and other somewhat revealing information such as the creation date and time. With Folder Lock, or other similar programs that encrypt all the contents of a folder, or other container, all that is hidden.

