Encryption/Security Mechanism

Hi All!
I cudn't find any place to post this question, but i really need experts help here..
I will try to keep it brief,
For our system operations, we highly depend upon the EDI Files coming into our system through FTP from our business partners, we have given them FTP locaitons where they write the files then our system picks and processes them, the same process we do to send EDI files tou our partners.
Now i have been asked to establish a security mechanism because the information being passed is highly valuable and confidential.
Now i need you ppl's suggestion regarding this... i have recommended my manager to implement encryption techniques, now the questions are

1. How to implement encryption with FTP files?
2. How to make it unbreakable?
3. How to implement public/private keys mechanism?
4. What would MD5 do in my scenario?
5. Do we have any software which encrypts the data and FTP it? and does vice versa?

Thanx in Advance for your suggestions..
Regards

Quote:

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Originally Posted by moinkhan

God is One

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One what? :ehh: :confused:

Those eyes are freaking me out man.

CAPICOM is a good method. M$ developed (or bought) it from someone.
I know how to encrypt text, but I think that maven has something in Codebank/VB to encrypte binary files.

Why not just use SFTP?