Download vmware player and install xubuntu in a virtual machine. Perform update on the os and reboot.
I was under the impression that a virtual machine protects the host OS from possible malware from within the VM, but not the opposite. Am I wrong?
It can be both. The virtual machine is like a separate PC and if it's running linux, then even better. A malware on the vm cannot harm the host, and a malware on the host (assuming windows os) cannot harm the vm, however if someone is able to control your host os, then they can start the vm and do damage, or "steal/copy" from the vm.
Thanks for the info. I need to do more research obviously.
I do like your strategy for keeping your keys safe. I have been keeping mine in a truecrypt encrypted usb stick, with a symbolic link pointing from the .factom folder to the truecrypt mount folder. However, this is on a laptop which I use regularly for other stuff, so not as secure as your method.
I don't know why the Factom devs have chosen not to encrypt the wallet, but I'll feel better when a safer option comes along.