This is only true of Snow Leopard.
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Lion and ML use Filevault2, which uses whole disk encryption, not just the Home folder. Making your Home folder encrypted is a pain and causes numerous admin problems for OSX processes. Either turn on FileVault or use an encrypted image for your Documents. If I use FileVault all of them would have access to the whole disk. Btw, there is a very basic security problem with dmg encrypted images. Consider your mac is confiscated in UK. You have a same problem with FileVault. Good trick! The problem is that if you create a dmg from a folder of 10MB, the dmg has a maximum capacity of 10 MB and it is not expandable, and so it is not possible to add new files to the dmg.
Or is there a way to do that? For an expanding disk image, you need to create a New Disk Image and specify the type as Sparse Bundle. You can choose to encrypt this and then you can copy stuff in to it. It will resize the image to hold the data. Of course, you have to trash the original folder, otherwise it would be pointless.
But the original folder is still there will all the content, and this original folder is NOT encrypted! Im just wondering what if I put the dmg to dropbox, this way i would able to store my company files securely in dropbox. Sorry if this is a bit late but the answer is yes. It will securely mount across the network because the data is encrypted. And a blog covers your idea too. How can put an icon for folders as a default? Name required. Mail will not be published required.
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