Jeez Louise - it's really not that hard. Staying secure while travelling is really pretty simple:
1. Carry your own machine - an Apple if possible, if not, some flavor of Linux. If you're too cheap for an Apple and not savvy enuf for Linux, Windows is OK. If you use anyone else's hardware, assume it is keylogged and behave accordingly. Have a backup device like an iPod Touch.
2. Always enable SSL. When doing anything even remotely risky, ensure SSL is enabled and is being used
3. Ensure your OS / browser / firewall / virus scanner is updated. Virus-scan daily.
4. Ensure you are using a software firewall / virus scanner, and that they are enabled
5. Do not use Internet Explorer
6. Use TrueCrypt to create an encrypted volume in an unobtrusive place, named unobtrusively. Use this volume to store things you need to store that you don't wanna put on Google Docs. Why not use whole drive encryption? Because having your laptop siezed and imaged at borders is not unknown. If the investigators see that your drive is encrypted, they will attempt to force you to divulge the passphrase. In many cases, local laws make it illegal for you to refuse. A TrueCrypt volume of 50MB or so named HiDefPortraitSlideshow.ppt will prolly go unnoticed.
That's pretty much it. No VPN, no VLC, no virtual machine, no thumb-drive based Linux install, no LiveCD, blahblahblah. Doing just that stuff makes you a difficult target, and there are lots of easier targets out there....