Hmm, just set this up too.
Dropbox Can't See Your Dat– Er, Never Mind: "bizwriter writes 'Dropbox, the online backup and file sharing service claims to have hit 25 million users in a single year. But a change in terms, noting that Dropbox will give up data to law enforcement under a legal request, showed that the company's security claims couldn't be possible. It turns out that Dropbox claims in one place that encrypted data makes it impossible for employees to see into user files, but in another says that they're only 'prohibited' from doing so.'"
