Encryption

Hi,

I wish to encrypt all USB storage devices that are being used across our
Windows 2003 domain with Windows XP clients, so that only users within our
domain can access the data on them.

I have been looking into EFS encryption and EFS will only encrypt files and
folders and not the entire device, is this correct?

Does anyone know of any good alternative solutions apart from EFS, that will
encrypt USB devices?

Thanks