A cool feature gets introduced in Intrepid, and it's called "Encrypted Private Directory." As of now, you need to install it manually and run some commands, but it will get sorted out by the final release.
What this does is it makes a secret folder in your Home Folder (/home/your_username) and if you try to view the contents without knowing the passphrase, whatever you try to view becomes random blocks and letters. Pretty neat, huh?
Here is how you can test this and also, use it, if you want (of course, you have to have 8.10 running.) Open up GNOME Terminal (Terminal) by going Applications → Accessories → Terminal. (Type in one line, and press Enter, then another, and Enter, etc.):
- sudo aptitude install ecryptfs-utils
sudo auth-client-config -p ecryptfs_standard -t pam-auth,pam-session,pam-password
P.S. By the way, ~ stands for /home/your_username. (Ex. ~/Private would be a folder whose location is /home/your_username/Private.)
UPDATE: No need to mention auto-client-config. Edited it.