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I am looking for a program for Windows 7 which will encrypt files specified by me and allow me to view/edit/delete those files without creating a virtual disk. I do not want to have virtual disk as a domain administrator can access it so truecrypt is not the possibility.

One possibility is to use winrar with password protected archive but winrar serves a different goal so it is not very user friendly for this purpose.

If it's possible it would be nice if the program does not creates temp files while I open the files.

Any suggestions?

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PGP is probably what you want http://www.pgpi.org/products/pgp/versions/freeware/

But, you can disable administrative shares - http://www.petri.co.il/disable_administrative_shares.htm

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As I understood if I disable administrative share even a domain administrator cannot access them? Is it possible on windows 7 too? – Giorgi May 13 '10 at 19:10
Yes, domain admins will not be able to access the c$ drive, but depending on your netowrk/software installed admins might have another way of viewing your drive contents. According to this (social.technet.microsoft.com/Forums/en/w7itpronetworking/thread/…) it works in Windows 7. – bryan May 13 '10 at 19:31
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How about GPG4win (http://www.gpg4win.org/) or related project GNUPT (http://www.gnupt.de/wp/?p=53&gtlang=en)

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