I believe you are asking for the following items: encryption of USB keys and 
whole disk encryption. Both of them exist in Ubuntu:
 For the USB key, see 
http://www.emcken.dk/weblog/archives/164-Encrypted-USB-drive-in-Ubuntu.html
For the full root encryption, you need the alternate cd and need to manually 
partition the computer creating encrypted drives.

If you need help setting these up, please ask a question on Launchpad Answers:
https://answers.edge.launchpad.net/ubuntu

** Changed in: ubuntu
       Status: New => Invalid

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How my company and MSFT are Ubuntu Linux - Please Fix!!!!
https://bugs.launchpad.net/bugs/182190
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