How can I encrypt a particular directory and not Home?

I have a work iBook that I use for travel and I'd like to encrypt a particular directory instead of my whole Home directory. Can this be done? If so, how?
If I NEED to use File Vault on my home directory, does this slow down non-work things like making DVDs, working with Photoshop, playing games, etc?
What if I made another user, like Work, and used File Vault on that? I guess that would work, but could I access a file while I'm logged in as Home?
Thanks,
Tom

>Re: 1: So, basically what I'm doing is creating another partition...but an encrypted partition, right?
Not a partition, per se. While a disk image looks and acts like a partition in some respects (you can mount it at the desktop, copy files to/from it, etc.), it's actually just a file on disk, which means you can copy the disk image to another machine, open it up and get it's contents (password-protection notwithstanding, of course). Partitions cannot be moved from machine to machine (or from disk to disk)
Also, if you create the disk image as a sparse image, it only takes up the amount of space consumed by the files within it. This means that if you create a 1GB image but only copy 100MB of data into it, it'll take up 100MB of space on disk (plus a little overhead). Compare that to a partition that will take 1GB on disk, even when it's empty.

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