Making a secure jump drive

[Brian]

A while back I lost my USB jump drive.  After careful consideration,  
I decided to get a new jump drive, the same as my old one, but this  
time consume all of it's space with a password protected and  
encrypted disk image, or partition.  Hopefully, I thought, this would  
protect my information, so even if it was stolen again the data on it  
would be protected from unauthorized viewing.
However, I don't know how to go about this.  I know I use disk  
utility for this, but I'm not sure where to go from there.  Could  
someone please help me?  Also, if anyone has a clever way of  
protecting the drive from being formatted, so as to make it  
completely unusable for any unscrupulous individual who might take  
off with this drive, I would greatly appreciate it,
Brian

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