For anyone who wants to encrypt data for free, check out Ubuntu 8.10: You could get an extra hard drive and install Ubuntu 8.10 (a 1 Tb drive is as low as $120). Then follow these directions to setup a hidden, encrypted directory: https://help.ubuntu.com/community/EncryptedPrivateDirectory If you store all backups in the hidden, encrypted folder, I think that would cover the requirements. You can even run Ubuntu from an external drive: http://pocketseo.com/scripts/43 Josh -- http://twitter.com/hostelmana