Wikipedia
CrossCrypt
CrossCrypt is an open-source on-the-fly encryption program for the Microsoft Windows XP/2000 operating systems. CrossCrypt allows a user to make virtual drives which encrypt any files stored on them, making the encryption process completely seamless to the user.
CrossCrypt is based on FileDisk, virtual disk driver for Windows NT/2000/XP that uses one or more files to emulate physical disks, adding encrypted volumes functionality.