If I stick a Sandisk Cruzer USB drive into my MacBook Air, and then encrypt it (via Finder), will my MacBook Air be able to use it seamlessly? Or will I be asked for a password every time I try to read or write to the USB drive?
This is the window you will get when you attempt to mount an encrypted drive. You can choose to store the password in Keychain (a program that stores application passwords on your Mac, encrypted and tied to your Mac password), in which case the drive will be mounted normally without a prompt once you plug it in. Make sure you record the password somewhere though, in case you ever lose access to Keychain.
Thanks -- appreciate the screenshot.
How do you encrypt a Flashdrive via Finder?