One major use I have for desktop virtualization, is for creating a high-security environment, for people who have stuff to hide. I put VMware virtual machines inside of TrueCrypt containers, thus getting around the need to use time-consuming products like CyberScrub (which securely erases files and unused disk space). I call this the "box within a box within a box" approach, as the physical computer is the outer box, which contains the safe, which contains the virtual computer. I'm curious as to whether anyone else does this, and I look forward to the conference.

http://www.truecrypt.org

I use TrueCrypt for sharing secure files between Windows and Linux, but I hadn't run VMs with it. This is a fun idea. I've played with the recent release of PuppyLinux 3.00 with added development (compilation) environment, it's rather full featured although small, perfect for running virtual machines underneath it. Getting TrueCrypt to compile with it might be a trick, but should be possible.

More fun... think we can get TrueCrypt and VMWare on an OLPC 'XO' box?