DiskCryptor 0.9 has been released on April 05, 2010. Here is the changelog: Downloads are accessible from this page.
It will install over the old version without messing it up? I'll still be able to mount partitions encrypted with the old version, right? No backups or other adjustments needed?
Yes, that is how I updated my system. Quick and simple, and had no problems. Two DiskCryptor versions cannot co-exist together, the older version will be gone. No backups or other adjustments are required. But of course, as is also recommended right on the program's download page, it is a good idea to have LiveCD/LiveDVD/LiveUSB with DiskCryptor, just it case.
Well I guess this can be answered in different ways. Personally, the people with limited computer experience that I myself know, are using computers for internet, chat, video and wordprocessing, and I would not ask them to understand much about security or encrypt their drives. I just set up things for them myself. Once the system partition is encrypted with DiskCryptor (or if other partitions (if any) have the same password too), there is no need to interact with the program beyond entering the pre-boot authentication password. So in this particular sense it is very easy to use for anyone.
Can you elaborate on that please? I think you're saying that it's possible to encrypt many partitions, including the system one, with the same password which when entered decrypts them all at boot. Is that right? I'm looking at coming to DiskCryptor from TrueCrypt that has the ability to encrypt every drive opened upon authentication, which is something I want.
While TrueCrypt and FreeOTFE keep emphasizing their "on the fly" encryption/decryption in their papers, I haven't seen that mentioned anywhere in DiskCryptor's documentation (not that I've studied it thoroughly). Does that mean that DiskCryptor uses a different method in encryption/decryption process?
When you enter password at pre-boot authentication stage, bootloader tries to mount all the partitions it can access that would accept the supplied password. No, it's the same method, though it is true that there is no emphasis on this. I believe it is refereed to as "transparent" on the main page.