Have you tried out the nifty new Google Desktop Search product? If so, you might be putting your files at risk unnecessarily. It turns out that the search product is too good--it'll actually search and decrypt encrypted files. And that means anyone using your system can see passwords, secret folders and other things. Our article details the problem and comes up with a way around it.

http://www.pcmag.com/article2/0,1759,1708644,00.asp

Looks like G's desktop search can decrypt files such as your encrypted Microsoft Office documents.

You can specify what directories G shouldnt go into (like robots.txt). Also G has said they may incorporate a password feature to protetct your results.