Securing Contacts, Calendars and Photos
Okay, I took a quick glance at this discussion, and only one person brought the true issue to light.
WHAT ABOUT THE INFO YOU CAN GET DIRECTLY FROM THE IPOD SCREEN INTERFACE! I CAN'T LOCK PRYING EYES FROM THE SCREEN!
Any contacts, scheduling, notes or photos can be viewed by anyone who picks up your iPod. If you have important, personal, secret, or private information or images on your iPod and it gets stolen or "borrowed" and, here's the important thing, you use it like it's designed, for more than just music, then you're and your contacts are vulnerable. If I'm wrong let me know.
In regards to safeguarding files stored in the hard drive, Disk Utility's ability to make an encrypted "read/write" .dmg file should be sufficient for most. But it should be easier to "make" one of those files directly from the finder. Sort of like "make an archive."
I hope this brings the iPod security question upfront and that Apple does something about it right away. iPod Photo is going to have a hard time, how can someone in their right mind keep some of the photos, names, and information on their iPod?