This is just to say I have relaunched the FreeOTFE project as 'DoxBox' (the name change was necessary because of the licence). It now runs on Windows 7 (with a small issue) You can find a discussion by googling 'doxbox encryption'.
FreeOTFE provides very good security and an extremely intuitive user interface which is easy to use, and adds a new (secure) disk drive. For more advanced users, it also offers a *lot* of security options and gives complete control. Cross platform and supports Windows, Linux and Windows Mobile PDAs