Scramdisk is a program that allows the creation and use of virtual encrypted drives. Basically, you create a container file on an existing hard drive which is created with a specific password. This container can then be mounted by the Scramdisk software which creates a new drive letter to represent the drive. The virtual drive can then only be accessed with the correct passphrase. Without the correct passphrase the files on the virtual drive are totally inaccessible.

Once the passphrase has been entered correctly and the drive is mounted the new virtual drive can then be used as a normal drive, files can be saved and retrieved to the drive and you can even install applications onto the encrypted drive.

Scramdisk allows virtual disks to be stored in a number of ways:

1. In a container file on a FAT formatted hard disk.
2. On an empty partition.
3. Stored in the low bits of a WAV audio file (e.g. steganography).



http://www.scramdisk.clara.net/dload.html