How to put security on my laptop in case it's stolen?

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I have a MacBook Pro and I'm wondering what I can do to secure the data the best I can in case it's stolen. When I had a Windows Laptop I had a password to log on. I know someone could still get into it without too much trouble with a reinstall of Windows, going through DOS, etc.
My question, what is the best way to do this on a Mac? I set up a logon password so when my screen saver comes up in a minute of no use it requires a password to get back in. Yet all someone has to do is a restart and for some reason it goes straight into OS X without asking for a password. Is there a way to change this?
Is it possible for me to somehow encrypt my data to somehow further protect it? Of course I don't want to do anything that will slow my system down.
 
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Calgary, AB
Your Mac's Specs
White 2.0GHz Macbook, 2GB RAM, 160GB HD
I'm not too sure about encrypting the data, but if you go to your System Preferences and click on Security, there's the checkbox that says "Disable automatic login". Just check that off and everytime you boot up your laptop, you'll need your password to get in. I also believe (if my memory serves me correctly) that you'll need your password to install a fresh copy of OSX, so your data will be safe.

EDIT: Wow, I can't believe that I didn't notice it.. But on that same Security screen, there's a feature called "File Vault", which will actually encrypt your files. I have not tried it, but it's description seems like there will be a lot of password-entering if it's on. ;)
 
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15" 2.2GHz MBP w/ 2GB of ram and 320 GB HD, 4GB iPhone, 60GB iPod
theres also this program/service out there that you can put a security system on your mac where in the event it is stolen, your isight will monitor the person on the other end. say: your MBP goes missing. who has it? you call up the people you have the service through, they do there thing, and they monitor everything that is going on in front of your computer. i cant remember the site, but i would do some checking into it.
 
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2GHz Mac Mini 2GB RAM 160GB 10.6.2 | MDD DP 1.25GHz G4 1.5GB RAM 10.4.11 | 233MHz iMac G3 10.3.9
theres also this program/service out there that you can put a security system on your mac where in the event it is stolen, your isight will monitor the person on the other end. say: your MBP goes missing. who has it? you call up the people you have the service through, they do there thing, and they monitor everything that is going on in front of your computer. i cant remember the site, but i would do some checking into it.

http://www.orbicule.com/undercover/
 

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