If you’re really paranoid that is the way to do it. I haven’t yet, but maybe someday. I just use truecrypt full disk now, but I guess I can setup a hidden and fake OS in there. Truecrypt calls it ‘plausible deniability’. Well, it’s a part of that whole idea they have.
My first response after they found the laptop would be:”Where the hell did that come from?”
T r u e C r y p t
Free open-source disk encryption software for Windows 7/Vista/XP, Mac OS X, and Linux
Main Features:
Creates a virtual encrypted disk within a file and mounts it as a real disk.
Encrypts an entire partition or storage device such as USB flash drive or hard drive.
Encrypts a partition or drive where Windows is installed (pre-boot authentication).
Encryption is automatic, real-time (on-the-fly) and transparent.
Parallelization and pipelining allow data to be read and written as fast as if the drive was not encrypted.
Encryption can be hardware-accelerated on modern processors.
Provides plausible deniability, in case an adversary forces you to reveal the password:
Hidden volume (steganography) and hidden operating system.
More information about the features of TrueCrypt may be found in the documentation.
What is new in TrueCrypt 7.0a