I have a text.txt file that has all my passwords in it like so:
gmail password 1k3,dmvl3
facebook password 1k38K2k1nL
Truecrypt is super easy to use. You can grab it from http://www.truecrypt.org/downloads
It can create a virtual encrypted disk within a file or encrypt a partition on your HDD. There is a how-to on setting up virtual encrypted disks on the Truecrypt site.