i like it. it's free, open source, easy to use from windows context menu, uses AES-128/sha-1 encryption (which is pretty good, AES-256 would be better), and lets you use both a password and keyfile, lets you encrypt things into exe-files so the recipient doesn't need Axcrypt installed to decrypt. i use it to encrypt sensitive stuff i put in dropbox or other clouds. i use it with an easy password (so it's fast to type), but also a keyfile (which it auto-remembers on my local system), which would be almost impossible to bruteforce. so my cloud stuff should be secure unless someone either gains physical access to my computer and steals the keyfile, or there's some unknown vulnerability in the program which could be the case with any software. there's no linux or android version in case that's a concern for you, and it just encrypts files, so you cannot use it to encrypt a folder or several individual files into one encrypted file (although you could zip them into such first). all in all i like it a lot and find it convenient to use.
I trust and use it too. It has gotten good reviews for quite some time so I feel it has stood the test of time. I like it well enough I have donated to it! The regular download can contain OpenCandy or the like, so my choice was to register (for free) at the website and then you have access to the program without anything bundled with it.
I don't know how good it would be up against a sophisticated hacker, but it's good enough to keep out those who aren't that sophisticated (snooping family members for example). I like it mainly because of it's ease of use and it does what I need it for.
It's very well done and I rely on it a lot. It also add nice shredding features. Oh, as an added bonus, it can be decrypted on IOS, there are very few encryption tools that are easy to install & use and multi-platforms such as this one. A real gem.
The "Encrypt Copy to .EXE" is also useful sending encrypted files to parties that don't have Axcrypt.
Why use this instead of 7-zip? 7-zip can do AES 256, and it totally open source with GPL licence. I am not sure what licence AXCRYPT use. But be aware - Truecrypt was also open source, yet it had to undergo security audit in order to determine whether or not there is backdoor in the final compiled code. So open source does not automatically translate into absolute security and privacy.
7-Zip could do just the encryption/wrapping without any compression (serve as a 7z container), therefore still a very quick process to do.
BTW, I used to be a AxCrypt user for more than 4 years before I switched to 7zip. Another reason I use 7z is that many many users, including corporations (such as Adobe) use 7-zip to distribute their installer packages, therefore many bugs in 7zip have already be ironed out over the years. I feel much more confident on the more widely tested 7zip.
But if you edit the file, don't you have to do a Save As and re-zip / password protect the file again?
No. Open file (prompts for password) edit, save, done. I save my passwords in one file, software key codes, etc in another, so frequent ease of editing is desired.