This story in the WaPost made the hair on the back of my neck stand up. Key quotes reflecting views of both sides:
"They're saying they can rifle through all the information in a traveler's laptop without having a smidgen of evidence that the traveler is breaking the law," said Greg Nojeim, senior counsel at the Center for Democracy and Technology. Notably, he said, the policies "don't establish any criteria for whose computer can be searched."
Customs Deputy Commissioner Jayson P. Ahern said the efforts "do not infringe on Americans' privacy." In a statement submitted to Feingold for a June hearing on the issue, he noted that the executive branch has long had "plenary authority to conduct routine searches and seizures at the border without probable cause or a warrant" to prevent drugs and other contraband from entering the country.
Setting aside the basic weirdness of having a security agency riff through my photos, contacts, blog entry drafts, music choices etc just because they want to, the fact that I often have confidential work information on my computer as well is enough to give me the total heebie jeebies. It's encrypted, but so encrypted that it's not searchable? Probably not. I'm using Live Mesh to synchronize data right now -- maybe the answer is when I travel to take all data off my computer and leave on the service except for what I'll be working on while in the air.