Don't worry, you're not paranoid, you're just realistic. It's an ugly world out there, and you need protection. So I've rounded up three encryption programs from ZDNet Asia Downloads that offer industrial-strength privacy protection.
Cryptext lets you encrypt or decrypt any file by right-clicking it. It uses a 160-bit encryption key, so it's very tough to crack. (Shareware/Win95-98-NT)
WinXFiles Blowfish is an encryption program with a twist--it includes a secure picture viewer so that you can encrypt image files and then later view them inside the program without first having to decrypt them. (Shareware/Win95-98-NT)
Magic Folders lets you make any folders and subfolders invisible to anyone but you on your system. It's particularly useful if you have children and want them to be able to use your computer, but don't want them to be able to delete or view important files. (Shareware/Win95-98-NT)
Use these three programs and you'll no longer have a need to be paranoid anymore.
What do you use to keep your secret stuff a secret? TalkBack to me.