Your 3 options in the wizard are to: a) create a “file container,” which is a virtual disk to store the files and folders you wish to protect, b) format and encrypt an entire external drive (like a USB memory stick), or c) encrypt your entire system drive/partition. In this example, we just want to have a place on our internal hard drive to store sensitive information, so we’ll leave the default first choice, Create a file container, selected and click Next >. Most people will be fine using the default Standard TrueCrypt volume type, as opposed to the other option, Hidden TrueCrypt volume (select the more complex hidden option if you could plausibly be forced to reveal a password, e.g., in cases of extortion. If you are a government spy, however, you probably don’t need this “How To” article). Click Next >. Click Next >. In the next screen, “Encryption Options,” you can also leave the default encryption and hash algorithm, then click Next >. (This window informs you that the default encryption algorithm, AES, is used by US government agencies to classify information up to the Top Secret level. Good enough for me!) Tips/Notes: TrueCrypt will let you know when the encrypted container has been created successfully. You can then close the “Volume Creation Wizard.” Highlight an unused drive letter and choose Mount to open that container as a virtual disk on your computer (you’ll be prompted for the password you created). Your container will then be mounted as a drive letter on your computer and you will be able to move files and folders you wish to protect into that virtual drive. (For example, on a Windows PC, go to the “My Computer” directory and cut and paste files/folders into the new TrueCrypt drive letter you’ll find listed there.)