With all the latest "Laptop+Private Data Stolen" news lately, and the responses about TrueCrypt and how free/easy it is, I decided to give it a shot.
I've got a 1GB thumb drive I carry around everywhere I go. It has the usual suspects on it: Firefox, Thunderbird, SciTE, CatInABox, GnuPG, etc.
After installing TrueCrypt, I just tell told it to format the drive as a TE volume, gave it a pass phrase, copied my files back, and now have an encrypted drive. Now if I lose it, the new owner won't get anything useful from me.
Now, time to wife-proof the pr0n stash.