Hi,
the VM is because my backup software will be a disk to disk solution (i will pull the data from my build/test servers to the drive for sending to the customer, i then will restore it to the final live server) hence the linux level partition encyption will take care of the OS level side of things
the true crypt side of things will be to encrypt the removable disk and to hide the data they will just see some other random data
i know its a over complicated idea but given that i recently had a drives stolen (which was with another engineer who was ment to lock it away...) with products and code i had written on it if it happens again they wont see anything that will be of much use
i would carry the data with me at all times but its not always that straight forward (it can be from 500gigs up so 2.5inch drives are still a little out of reach) as when these disks are not with me they are with the customer and they have been stolen in transit or from the customer sites,
i was merly asking if there was a suitabley hardened OS distro out there to go with my own security procedures of strong passwords, minimal daemon's running etc etc
also sorry, reading back at my first post it wasnt all that clear perhaps i should be a little less tipsy when writing!