Instead of making it glaringly obvious that data is encrypted Rubberhose makes the presence of encryption deniable -- e.g. supposedly it can't be proven that the data is encrypted even though it is. This technique might be useful for people who, for whatever reasons, cannot use other forms of data encryption.
If you have a Linux box laying around then you might consider trying it to see how it works and whether it could be useful in your network environment. Here's a blurb from the related Web site:
"Rubberhose differs from conventional disk encryption systems in that it has an advanced modular architecture, self-test suite, is more secure, portable, utilises information hiding (steganography / deniable cryptography), works with any file system and has source freely available. Currently supported ciphers are DES, 3DES, IDEA, RC5, RC6, Blowfish, Twofish and CAST.Here's the link to the site, and thanks to Bruce Schneier who pointed this tool out in his blog.
Written by Julian Assange, Ralf P. Weinmann and Suelette Dreyfus, Rubberhose is currently available for Linux 2.2. Userland daemons and tools are highly portable. NetBSD & FreeBSD kernel modules are nearing completion."