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While You can do many things to improve your security you can't really stop someone
from breaking into your box if they really want to. Here I will just try to
scratch the surface and try to provide idea what can be done.

Article will be divided in three parts: Physical Security,Windows Local Security and
Windows Network Security but since it is huge subject I shall further divide last two.

I will focus on Windows since I believe most of "ordinary" users have some flavor of it.

DO NOT DO THIS ON YOUR WORK OR OFFICE COMPUTERS.
Your admin probably ensured proper settings.

So after this "disclaimer" I could start already could I...

Part 1-Physical security

When you power up your box first you see is something like "Hit Fx to enter
setup " where x is some of function keys. This is your first line of defense.
BIOS. When you enter BIOS you have some options to control some basic functionality
like boot order, boot password and so on. Try it.

So what can be done here is to put your startup BIOS password so you will be prompted
every time your computer boots.Its not related to OS. Don't forget that password.
If you don't like messing with passwords what you can do is disable every boot device
except Hard Disk.

Why?Because there are BIOS crackers and password extractors that can be used to do
that. Crack and extract BIOS passwords from bootable CDs.Second thing one could use some
Linux live CD and boot to Linux and have your files or just load XP recovery console.
ADMIN status without password that is.

Anyway if you use a home PC(but same goes for laptop)thief can pass that also if he
has enough time.There is CMOS battery on motherboards that keeps in memory whatever
you changed from original burned in defaults. So no battery=no memory and your BIOS
is reset to defaults again. NO PASSWORD.

They could also use flash program from vendor if he knows what BIOS you have.
Or he/she could remove your hard drive and can have all your data in about 10 minutes.
Software and hardware exist that can be plugged between your keyboard and computer
and which can catch all (even to 2,000,000) keystrokes,wireless AP's can be
installed as well as switches,cell phones,bugs,web cams ... You name it.

So I guess only real physical protection is to check your systems regularly(prior to
every use) for strange things.Just a quick look behind should be enough, so you
ensure there is no "extensions" between your keyboard connections and computer,
no strange antennas or wires.You could position your keyboard in certain
way and see if its been moved,mark screws in discreet way so it wont be noticed by
anyone else. You get the idea I believe.

You could do that on work computers also but if you discover something notify your
Admin first.

Hope it helps somewhat.

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