Hello,
I just signed up for this seemingly interesting web-site. Regarding encryption and passwords - I encrypted my winXP that also had a few of my password protected excel files. Unfortunately, I had to re-install XP, upon receovering my data, It won't open up my protected files. After a hell lot of running around, I had to buy an application that restored my encryption certificates, restored my data and was able to open up my password protected files. So, that much for encryption on WinXP.
But from WinVISTA perspective, if the Bitlocker is on, I have heard that it is almost impossible to recover data.
Hope this helps.