Secure local data

From: Malick (malick.john_at_NO-SPAMgmail.com)
Date: 07/22/05 

Date: Fri, 22 Jul 2005 12:03:11 -0400

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Is it safe to rely on login and passwords ?

I mean, if someone want to access a machine localy, is it safe enough?
Or a person with local access to the machine could just insert a
CD-bootable distro ( like knoppix ) and enter the system that way, since
Knoppix gives root access?

Is it just paraoia, or is it possible? and if so, how to secure the
system? Just encrypt sensible data and let the rest open to anyone with
local access to see? or there is a way to restrict access on a more
strong way?

Thanks
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