I like to use multiple volumes and operating system virtualization, it just makes life a lot easier if I don't have to lug around more than one laptop. (Ok, the idea of a single laptop is still off in the future, how many of us still travel with client supplied laptops as well as personal laptops.) How about hardware-based encryption?

Dell and Alienware are now selling laptops with Hitachi's Travelstar 7K200 with optional hardware encryption. The Channel Register hits on a couple of advantages of this drive:

First is its impact on system resources, especially power and acoustics, which is similar to existing 5400RPM solutions. Second is its hardware-based AES data encryption. Both of these are important considerations for commercial users, especially with today's increasingly mandated data security practices.

Like BitLocker, this solution won't help with unencrypted flash drives. Another feature is called Quick Erase:

From an operations perspective simply deleting the encryption key renders the hard drive unreadable and could save considerable time in repurposing equipment to new users. This capability is offered through the Quick Erase feature and we suspect will be a capability welcomed by IT managers and support personnel who are tasked with managing laptops and safeguarding sensitive information that may be stored within.

Boy, there's a case of turning lemons into lemonade.

So which is better? For me, it's the hardware encryption. I don't want to be locked into any operating system, virtualization is getting more and more useful, and splitting large drives into multiple partitions is too useful to loose. Of course, I don't have to upgrade an entire salesforce's worth of laptops either. If you go for a software option, check some of the third-party vendors.