Previously, I discussed cryptographic mounts to hold sensitive data. It's worth pointing out an article that is making the rounds today by 9 authors from Princeton, in which the researchers describe an attack on cryptographic techniques, including the one I've described.
The technique relies on the fact that modern memory can retain its information for several minutes after the computer stops sending it refresh signals. What this means is that a person with physical access to the computer can pull the power connector from the computer and then remove the memory chips, insert them in another computer, and read the cryptographic keys out of the memory. I don't know of a good way to avoid this attack. If the cryptographic volumes are mounted when the computer falls into the hands of the attacker, the data will be, in theory, recoverable.
So, what can be done to prevent the key from being resident in the computer's memory at the instant that the attacker unplugs it? The key has to be available to the operating system so that it can read and write that data in normal operation. Sure, you could get specially modified hardware that deliberately overwrites the main memory from batteries when the power connector is removed, but maybe there's a way to store 128 bits somewhere other than in main memory?
A cache line on a modern CPU is 64 bytes, big enough to hold two 128-bit keys. Could the operating system subvert the hardware's L1 caching mechanism sufficiently to pin a value in the cache and remove it from L2 and main memory? This attack won't recover data from the L1 cache, so if that's the only place the key is kept, maybe that would be enough. You sacrifice a cache line, but maybe it's worth it?
How about the TLB? That's another part of the CPU that holds data, and that one is explicitly designed to interact with the operating system. Could we find a way to store 128 bits in parts of the TLB, and then deliberately avoid overwriting them? Can the operating system read those numbers back out of the TLB?
Are there any registers that could be used? Probably not on 32-bits, there aren't many registers there, and on 64-bits you'd probably have to use a special-purpose compiler to avoid these registers being touched by a context switch, and avoid them being saved to memory when an interrupt handler runs.
What if you have fifteen keys, all of 128 bits? Well, I believe we could handle that if we had 256 bits of volatile storage space. The first 128 bits of volatile space holds an XOR key, that decodes all of the fifteen keys. The second 128 bits of volatile space holds the decoded key in active use.
Those are my thoughts, anyway.