Encrypt files on your USB flash drive on-the-fly
 

TrueCrypt allows you to secure your usb flash drive so that you don’t need to worry about losing sensitive information if you lose your portable drive.

TrueCrypt is a free open-source disk encryption software for Windows XP/2000/2003 and Linux. Encryption is automatic, real-time (on-the-fly) and transparent.

Download TruCrypt here ...

I checked out the link and the software sounds interesting. I myself would never have a use for something like this, though. In fact, I am wondering who in the general population would! I can see myself installing this Trucrypt software and thinking that it's a real lark, but if I take a look at myself, I am really just a regular person and if someone found my flashdrive, they'd be pretty bored with what's on it - music files, some pictures of some scenery, and a few bits of research on the history of cosmetics for a paper that I wrote. Pretty dull stuff. In fact, no one that I know (or have ever known) leads a life that's "interesting" enough that they'd be worried about their flash drives being lost. The only real loss would be the flash drive itself. This post is in no way intended to thumb my nose at yours. I'm just curious - Who in the world - among regular, everyday joes - would require encryption?

encryption can and should be important to all computer users. Especially those who belong to countless sites with username and passwords, unless you're using the same name and pswrd for all sites (which is the worse thing you can do) you probably have them written in a notepad somewhere... am i right? i bet you wouldn't want anyone knowing your credit card # or bank login, or how about your paypal password?
As an everyday example, the average university student needs to be careful of theft, especially in a computer major, i've seen assignments compared and students given zeros for copying/cheating (when the files had actually been "stolen"), if they had encrypted or protected there files somehow then it wouldn't have happened. I don't use encryption everyday, but everyone has 'sensitive' data on there computer, know it or not, and it really should be protected.
*Especially if it is portable!

Well, it is true that encryptions isn't necessary for everything, but it's better to be safe than be sorry. I know people who have stuff like portable Firefox on their USB drive, and I presume that they also have some passwords stored on it. So it is better to encrypt it all the time.

Even for projects, like William mentioned, it is better to encrypt them, because plagiarism in my school (any school for that matter) is a big issue and I personally know a person who had to go talk to a guidance counsellor because he plagiarized from my assignment (heh, I guess he couldn't resist :) ). And what if somebody steals the info about all your research done on those projects...?

So just to be extra sure I think it's better to encrypt any data on your usb flash drive, because you never know...

I have used truecrypt for the last two or so years. I have several areas protected with it, including an entire external drive.

There is a lot of personal information we store on our pcs. I don't use it necessarily to hide anything wrong or illegal, I use it to protect the possibility of personal information and data escaping my control.

I have never had a single issue with truecrypt either. It is rock solid.