Thank you for all the information. I will put it to use.
BTW, can you give a simple explanation of what PGP is and how to use it? And do you have any recommendations for related freeware? Thanks.
PGP is strong encryption software. Think military grade encryption. It allows you to encrypt emails and files in such a way that they are theoretically unbreakable. It uses the concept of a private and a public key. You give your public key to everyone so they can encrypt stuff to you but whatever is encrypted to you can only be decrypted by your private key (which you protect with a passphrase and your freaking life!)
There is an open source version of PGP canned GnuPG (or GPG for short). It functions the same as PGP and can even read PGP generated files (and vice versa).
Related software you should look into is Keepass (open source, secure password storage), Tor (open source, anonymity software), TrueCrypt (open source, drive or file encryption).
Advice: if you are serious about security, do not use ANY program that relates to security and is not open source. You simply can't know what it's doing and it may compromise your security.
HTH,
CypherPunk