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FreeOTFE is a free, open source software designed to provide you "on-the-fly" transparent disk encryption for PCs and PDAs.

 

Using this software, you can create one or more "virtual disks" on your PC/PDA. These disks operate exactly like a normal disk, with the exception that anything written to one of them is transparently, and securely, encrypted before being stored on your computer's hard drive.