Another One Is Totally Hacked. 70,000 Individuals Affected
From:http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9009784&source=rss_topic82
January 30, 2007 (Computerworld) -- The Vermont Agency of Human Services (AHS) today started sending letters to about 70,000 individuals in the state warning them of a computer compromise that may have exposed their Social Security numbers and other personal data.
But the AHS server that was hacked stored the data in unencrypted fashion, said Heidi Tringe, communications director for the state agency. Tringe added that the AHS now plans to stop keeping the information on the server altogether. "The original design called for the computer to store the data," she said. "That will no longer happen."
According to Tringe , the compromised server had "several weaknesses that could have been exploited," including a missing Microsoft Corp. security patch, she said. "Unfortunately, we have no way to determine what particular weakness was exploited."
Patches are here:

EFS is here:
Protecting Data by Using EFS to Encrypt Hard Drives
Bitlocker is here:
Windows BitLocker Drive Encryption Step-by-Step Guide
Application Based Encryption is here:
Cheers