After the fiasco a short while back users are scared of storing data on dropbox. Don’t be! Just follow DropBox’s recommendation to ENCRYPT! Check out the snippet below or this link:
This note is intended mainly for users of a laptop computer to protect their data from the action of thieves.
Privacy is the ability to protect your data from being read without your authorization.
A good way to prevent a thief or other nosey parties from reading your data is creating an encrypted volume in your Dropbox folder with FreeOTFE or TrueCrypt, and storing there the data you want to keep secret. See their website for instructions on creating and mounting an encrypted volume.
If you use FreeOTFE or TrueCrypt, you must unmount the volume before it can be uploaded by Dropbox. You will need to remount (and supply the password again) to view any files in the volume. You should also avoid making changes to the volume on more than one computer at the same time, since Dropbox would be creating a conflicted copy of the entire volume, rather than one single file, if multiple conflicting changes are made at the same time. The security of this approach depends almost entirely on the strength of your passphrase!
On Mac OS X you can also create an encrypted Disk Image (.dmg) using Disk Utility (normally found in /Applications/Utilities). Alternatively, you may encrypt your entire home directory using FileVault (System Preferences -> Security -> FileVault).