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This Microsoft article How to create a new personal folders (.PST) file in Outlook 2002 discusses the various ways to create a .PST, and the encryption choices available to you.
They state: "Click Best Encryption, and then set a password for your personal folders (.PST) file if security is of utmost concern."
That doesn't address the primary issue with passwords on .PSTs. Any search on Google will yield a number of software firms selling .PST password crack utilities. So, no matter the selection of available encryption -- the data itself is available even if the .PST is password protected.
Particularly sensitive data should be stored in other mechanisms, like an Exchange database -- where you should be guaranteed physical security based on the facilities around the data center security where your Exchange server resides.
Do you have comments on this Ask the Expert Q&A? Let us know.
Related information from SearchExchange.com:
Learning Center: Toolbox for Exchange administrators
Reference Center: Message encryption
Reference Center: Personal Store(PST)
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