R-Crypto is a disk encryption software to protect confidential information and personal data on a desktop, notebook, or a removable data storage device against unauthorized access. R-Crypto creates virtual disks (virtual data storage devices) encrypted on-the-fly. Such virtual disk is an ordinary file stored on any data storage device whether it's a hard drive, USB-disk, CD, DVD, or a network resource. An access to any information on the virtual encrypted disk is impossible unless user provides a correct password. All files stored on the disks are encrypted and decrypted in a real time using the cryptographic infrastructure of the Microsoft Windows operating system that includes various installable cryptographic service providers already pre-installed in Windows OS. For example Microsoft provides the most secure encryption algorithm Advanced Encryption Standard (AES) with 128, 192, and 256 bit keys. The software has an ability to automatically disconnect the encrypted disks upon encrypted disk file-container storage media is removed from the system, ability to automatically disconnect the encrypted disks upon exceeding an encrypted disk inactivity period and ability to automatically save and restore the encrypted disk network sharing options.