... if you're extra paranoid, you can actually encrypt a whole drive (or drive partition) when you first format it and all the data on that drive will be encrypted (I have this option in Linux every time I format a drive, so I assume there's something like it for both Mac and Windows).
Yes. Windows 7 Ultimate Edition and Windows 7 Enterprise Edition has a
BitLocker Drive Encryption feature. It's unfortunate that that's not available if you have Windows 7 Home Premium Edition, or Windows 7 Professional Edition. However, apart from PGP, there is another, free program you can use, called
TrueCrypt:
Description: TrueCrypt is free open-source disk encryption software for Windows 7/Vista/XP, Mac OS X, and Linux.
Main features:
- Creates a virtual encrypted disk within a file and mounts it as a real disk.
- Encrypts an entire partition or storage device such as USB flash drive or hard drive.
- Encrypts a partition or drive where Windows is installed (pre-boot authentication).
- Encryption is automatic, real-time (on-the-fly) and transparent.
- Parallelization and pipelining allow data to be read and written as fast as if the drive was not encrypted.
- Provides plausible deniability, in case an adversary forces you to reveal the password.
- Encryption algorithms: AES-256, Serpent, and Twofish. Mode of operation: XTS.
Notes: TrueCrypt is hard. But if you don't mind navigating through a technical interface, it can basically do everything that BitLocker and BitLocker To Go can do. So you may find it worth the effort.
I know that most Western Digital drives come with encryption features built in to their backup software, so you could check into that also.