Best Way To Password Protect Backups On Windows 7

been grappling with the difficult choice of backing up data via a portable hard drive, online storage sites, recordable DVDs or all the above.

Main inquiry involves PASSWORD-PROTECTING my data. My old hard drive required me to log-in each time I wanted to access my data. My new one does not. But I am looking for something stronger, something that - goodness forbid - if stolen, would be difficult to crack or reveal.

Tried Mozy online storage (not a fan), and have been reading up on TrueCrypt. Looking for a viable online storage option that won’t run more than $100/year.

Other than that, if anyone has any backup tips…would be much appreciated.

Basically, how does one prepare for the ABSOLUTE WORST, i.e. losing both computer and external hard drives, as well as physical backups?

Thanks.