With SQL 2008, a new facility is provided called "TDE" or "Transparent Data Encryption". This is sometimes required by clients whose corporate governance rules require files in a filesystem to be encrypted. What do you have to do to get this working with SharePoint 2007 or SharePoint 2010?
Nothing!
As the name of the feature suggests, you simply have to set it up on the SQL Server side (as per http://technet.microsoft.com/en-us/library/bb934049(SQL.100).aspx), and your underlying database files (and SharePoint Content) and any backups thereof will be encrypted without any extra effort on your part.
DDK
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