I got a wicked setup now with Linux (persistent) on a USB stick with the blockchain downloaded and saved on there along with my wallet (also backed up elsewhere) all encrypted within Linux and the litecoin app. Plug and go boot into it anywhere I want with it (trusted PC's only still of course) Super fast. I can send and receive to any exchange very fast. No reason to keep anything on any exchange as I fear especially BTCE anytime I use them and keep coins on there that they will up and disappear one day. If BTCE dissapeared tomorrow things would fall 99%. They have become the biggest exchange no doubt.
Very easy to do with just an 8GB USB drive. Don't even have to connect Linux to the internet if you want to be even safer. No reason to use windows at all.
unless you want to update the blockchain or send/receive funds right?
I need to look into this more. I only trade ~500 euro at the moment so I have it stored at one of the exchanges with 2FA protection which is currently enough, but as a negative, I've never looked closely at software wallets on my own PC (past the setup) but I didn't play around much with backing up the private keys, viewing said keys or running through recovery if you have a copy of the private key but lose everything else...
I'd be terrified of the 'I forgot my password' as well although I take measures against that as well, but I feel like enthusiastic users could manage to lock themselves out of their own wallets in the interests of making it 'super secure' and accidently make it so secure that it's too secure to get into themselves.
The solution of course is a couple of guides and some run throughs of situations with empty wallets and testing, but to do this properly this would take me a couple hours I don't have at the moment.
As an aside, Multibit bitcoin wallet doesn't seem to have to download the whole blockchain like the LTC wallet does. why not?