If targetting iOS 4, you can use the Data Protection APIs.
If you have 'Full' protection, does this encrypt the entire sandbox?
Specifically, If I downloaded say a .doc file to disk programatically will this be encrypted? Or is it only encrypted if I use the NSData data protection options?
It's only encrypted if you use data protection. See App States and Multitasking, and Protecting Data Using On-Disk Encryption.
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