8

DropBox seems like a useful service, but not one I'd trust any sensitive files with.

Is there an application that encrypts my DropBox files locally before DropBox sees them? Encrypting/decrypting them manually before syncing would be too cumbersome.

2

You could use AxCrypt to encrypt individual files transparently (open and edit them after encryption with double-click). This would have the advantage over TrueCrypt that Dropbox would not need to upload the whole container if you changed just one file in it. You would however still loose the benefits of delta syncing.

4

You can always use a TrueCrypt container file within your dropbox folder to accomplish on-the-fly encryption/decryption. see here for more info

Under development now is also Boxcryptor that offers similar functionality, but it's still in early testing and not recommended for actual use as of now.

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