If you use Linux kernel 2.6.x, you can use dm-crypt to encrypt your filesystem. On RedHat, it's installed by default, unless you did the bare minimum installation. On Ubuntu and Gentoo, you get can them from the package management system, - just search for "cryptsetup" and then install the package.
Here are some documents on how to use cryptsetup:
Here are some additional information on cryptsetup and other disk encryption softwares.
TrueCrypt is very popular among Windows users. But I don't have very good luck installing it on Linux. It has not been included in most package management systems. The TrueCrypt download area provides download for Ubuntu and Suse. Still I failed to start truecrypt.
Another option is to use EncFS:
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