If you are performing encryption at the folder level, you may choose “Encrypt this folder and all its contents.” After doing that, any file you later add to the folder automatically becomes encrypted. And likewise, once you are logged in to the system and/or network with your proper username and password (the same username under which you initially performed the file or folder encryption), then when you access files in the encrypted form, they automatically are unencrypted; and re-encrypted when closed.
There are also third-party Windows file and folder encryption utilities (see references below), some of which are commercial cost-based, and some of which are free. One such free utility is “AxCrypt,” which uses the AES-128 and SHA-1 encryption algorithms to encrypt files and folders. Simply invoke the utility, choose which folder or file(s) to encrypt, and then assign a password. Always retain the password, as this acts as your “private key” to later unlock and decrypt the files. Some nice features of AxCrypt include the fact that it asks the user if it should delete the original (unencrypted) file after encryption, and the fact that it allows the user to create a self-decrypting executable. With the self-decrypting executable option, the encrypted file or folder is given a “.exe” suffix and, therefore, the resulting encrypted “.exe” file can be taken to other systems and decrypted, using the correct password, without the need for installing AxCrypt client software on the target system.
Other third-party Windows Laptop file and folder encryption offerings
Commercial:
*BestCrypt
http://www.jetico.com/bcrypt8.htm
Free:
http://www.snapfiles.com/Freeware/security/fwencrypt.html
The below products can be found from the above link:
* Adrosa File Protector (AFP) – Uses AES 128 to 256-bit, 3DES 192 and has drag & drop batch mode
* Crypt4Free – Uses Blowfish 448-bit or DESX 128-bit and has a password generator
* PixelCryptor - uses an image (graphic) as a basis for the key
* File Waster and File Buddy - encryption and "true" erase
* AxCrypt – Allows for encrypted files that are self-decrypting (no need to install client at target)
Best Practice - Network File Storage vs. Laptop File Storage
A simple best practice is to store minimal unencrypted data on your laptop, and store more sensitive data on network drives at your workplace. This provides yet another measure of securing your laptop data: if your laptop is stolen, it has no sensitive data on it.
References
Windows Vista Encryption – EFS (Encrypting File System)
http://www.lockergnome.com/windows/2007/07/05/file-encryption-in-vista/
A Guide to Encrypting Files in Vista
http://www.jdenison.com/?p=337=1
Don't forget to check out Part 2 of Windows Laptop Security, where we discuss encryption of an entire o/s or hard drive.