encryption clarification

[Emma Gilbride]

Since I started this thread, let me clarify what my iBook is currently 
capable of and what it is I wish to do. (iBook, 12", 'ice', 650M, 
OSX.2.6, all system SW at current updates)

I am the only user and my iBook is set up to require me to log in.
To prevent start-up using a system disk (CD or otherwise), I have 
enabled  the firmware password.
I have Crypt to encrypt individual files on my internal HD.
I have SafeShred to really get rid of the trash.
I have and external 80G firewire drive for backups and CarbonCopy. 
Heretofore I have been using Backup and CDR's.
I have installed and subscribed to StealthSignal*.

What I need are two different things:
1) A way to encrypt or password protect my backup. Ideally, the CD or 
external HD would not be accessible without a password.
2) A way to encrypt or password protect individual folders as well as 
files.
3) Icing on the cake. I would like to set up my iBook so that a thief 
would be able to start it up and connect online, but not be able to do 
anything else. See the footnote about StealthSignal.

The reason for this concern for security and privacy is not mere 
paranoia. I am required by law to keep information received from some 
persons confidential. I take this responsibility very seriously. I am 
also the CFO of a small non-profit and I occasionally review the 
Quickbooks file of the organization. This information also deserves to 
be kept confidential.

*(This is a really neat and cheap service that helps track down your 
computer if it is stolen. Every time the computer is online, it sends a 
very short message informing StealthSignal  of the phone number or ISDN 
address it is using. Unless SS has been told the computer has been 
stolen, these messages are discarded. If you tell them your computer 
has been stolen, the next time it 'logs in' the information is used to 
inform the local police of the physical location of the computer. They 
have a good track record of computer recovery.)

Emma Gilbride

What's the difference between a saw and a bagpipe?
The saw is a musical instrument.

Why do pipers march?
A) To get away from the noise.
B) To present a moving target.