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There is a free program called 'Eraser'. That is the program I would use for shredding drives. The application can be made portable as well.
There is another app called 'Cybershredder'. That's good for shredding files. That application is portable.
If you going to go to that length, I recomend setting up a RAMdisk or dividing the drive into a SYSTEM and DATA partition. Keep data files strictly on the DATA partition. You'll need to shred the SYSTEM and TEMP file folders from time to time. I don't recommend using IE because where you surf are stored in system.dat files. At least with Firefox you can designate where the profile files will be kept.
You best bet would be to use a live boot linux CD. Everything would be in RAM. Store personal files on a server. Access the server when you need to use the files. You can remix the live boot CD to suit your preferences.
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