Hi Linda, 

My brief response, because IANAEAEUD (I am not an expert at encrypted USB
drives):

Most do the encryption at the device layer; to read the device, the user
enters a password or a biometric identifier and the entire device is
decrypted. Some will do it at the file level but this is less common, more
costly, not as generally available, and may be more difficult for the users
to work with. 

I don't have any recommendations for "leaders" but I'd suggest checking with
e.g. ZDNet, eWeek, Toms Hardware, or any of the other myriad of pubs that
have their own test labs for such things. Even Consumer Reports *might* have
some help here. 

Printing is not generally an issue where the printing is done through a
computer because the user interaction and decryption takes place before
printing. Where a printer supports direct USB printing I'd be surprised if
it worked at all because most printers don't interact with the user at that
level (e.g. entering passwords). 

Google "encrypted USB drive": http://is.gd/1xcL
Google "USB drive encryption": http://is.gd/1xd5

Hope this helps,

Jesse Wilkins
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