Slashdot linked to this the other day too. The funny thing is, while reading the story I thought to myself, "Hey, maybe it will be easier to get PGP set up in Mail than it was in Outlook. I can finally start encrypting my emails!"

But seriously, saying the 'presence of encryption software on a computer may be viewed as evidence of criminal intent' is like saying telling a cop they can't search your car is evidence of criminal intent. Once the cop suspects criminal intent, then they can legally do a search, so as long as the cop asks the question, they can do the search. Sounds like a slippery slope to me.