I little while ago I had to rebuild my laptop and when I did this I decided that I would encrypt my home directory. I have had a laptop stolen before and I will never really be sure what happened to the data on it. I figure that if I encrypt my home directory then at least all my data will be save if a thief removes the hard drive and tries to by pass the login. I decided that it was best to just encrypt the entire home directory so I would know that as long as all of my data was stored in my user folder it would be safe.
Oh, btw this is Windows 7 and EFS I am talking about.