Hi, I just tried out Steganos Security Suite 5, and have to give a sales pitch for it cuz I'm so impressed with its features.  I never even heard of this type of software until I read a recent magazine article, which referred to Steganos.  Anyways, refer to the website for its features, but here's what I like about it:

1- Tight encryption with 128-bit AES or Blowfish.  Essentially unbreakable.

2- You can chose to just encrypt a file/folder, create a virtual drive (stored as an encrypted file - can be up to 1.2gb) that you can store files to that get encrypted/decrypted on-the-fly (fast too), or choose to hide an encrypted file within another file (stenography).  So you could have a sensitive word document that's encrypted and hidden within another word document or a graphics file - and no one would guess that it contained anything but the fronting file. 

3- Supposedly (haven't tested it out yet), if you email someone an encrypted and/or hidden file, the recipient does not need the software to decrypt - it's self-decrypting.  You just need to give them the password. 

4- And my favorite feature is the virtual drive feature to store files on - very useful when used with a laptop because if you lose it or get it stolen, no one will be able to see your info.  If you have your virtual drive open, it automatically gets closed/locked when you put it into standby/hibernation/or power down.  So the only way anyone could get to your sensitive data would be if they got a hold of your laptop while it was still on with the virtual drive unlocked.  I have WinXP Home edition, with just one user so I can't use the built-in folder password protection.

There are some other features like password management, internet track removal, file destroyer, but I haven't really used those features.

If you're looking just to do stenography, there's Chameleon 2, which is cheaper - but it does not have all the other encryption tools that Steganos does.

Anyways, if you're a laptop user and have information you'd rather not have fall into other hands, I'd highly recommend using Steganos virtual drive encryption.  The stenography feature is nice to really hide a file, but I don't plan on using it much.  I'd love to hear other's experience with Steganos or other encryption software - especially on-the-fly encryption/decryption.