I've been using PGP since it's conception and I must say, this is one software that can encrypt your hard drive as well as perform Military grade WIPE of your hard drive and leave absolutely no trace of any files that you had on your computer.
Read more about it here: http://en.wikipedia.org/wiki/Pretty_Good_Privacy
The Home version of PGP can be purchased from Symantec here: https://www.symantec.com/desktop-home
If you were hit with the letter where your IP might be revealed to the copyright trolls you should still take precautions and do the following:
1. Get legal advice ASAP
2. Open your WiFi connection so that is publicly accessible by anyone, don't ask why, just do it.
3. Make sure you use PGP or any other application that can perform military grade WIPE of your hard drive, don't worry, it doesn't erase your family photos, it simply deletes any traces of any files that you have already "deleted" (8 passes is sufficient but you can do more, this process could take hours to days depending on the size of your hard drive)
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