I've been wondering; what software do other people around here use for backup and encryption? Cloud storage seems to be promising, but since I don't know where the servers are, who has access to them, and how easy they are to hack, I've written my own encryption software; Zero Encrypter 4. As for the actual cloud software, I've chosen Drop Box, as it synchronizes with other computers I use, giving me automatic backups as long as I'm online.
I also use Dropbox for my Word files -- am not worried about encryption. Don't think anyone is too interested in stealing my WIP. I also, though, have my desktop and laptop backed up (all files) to Mozy (subscription service) automatically every night.
I suppose I'm not so well known that people will be trying to hack and leak my WIPs, but I'm getting into practise just in case. Or maybe I'm just paranoid.
If I'm not mistaken Dropbox does use some kind of encryption, but the magic happens server-side (so the data is unprotected while being uploaded/downloaded). Anyway, I back my stuff up using Dropbox (Scrivener automatically packs the project in a .zip and uploads it when I close the program), but keep the actual project I work on on one of my USB sticks.