I use truecrypt on any notebooks with sensitive data (for windows) and encrypted LVM on linux. That way a simple format and I should be good if I ever sell the machine or it is stolen. On my desktops, I use truecrypt to protect a volume where I keep all sensitive data. That keeps everything well protected and unrecoverable. I would encrypt the entire drive on my desktops, but the performance hit sucks for games.
I am still hunting for a solution for OSx. FileVault is not really what I am looking for. I really want something that won't let my mbp boot without the password to decrypt it.
For existing data, dban or shred is the way to go.