Originally Posted by atomichybrid
what if my computer gets formatted and all, what will happen to the bit locked media?
Let's back up a little here. I don't think you have a good understanding of how encryption works.
Encryption is basically scrambling the data on the drive. You encrypt entire volumes with BitLocker. It's not a special container of any sorts, only drive space with data that has been rearranged so it becomes unreadable without the password to 'decrypt'.
Now with BitLocker, it will work on any Windows OS from XP SP3 forward (reading the data) because on the encrypted drive, Windows also stores a small executable to unlock in the event you access the data on an OS that doesn't have BitLocker natively installed. You can 'unlock' the drive from any PC that will support that executable.
Formatting is formatting. If you format the drive, the encrypted data is not spared.
The best application for this type of encryption is whole disk encryption on the host drive. For encrypting USB's, BitLocker works well enough but Linux systems won't be able to access the data. Other solutions like TrueCrypt are available cross platform (I'm pretty sure). Other Windows PC's though won't have a problem as long as they are XP SP3 or newer.
Also, when you encrypt the drive, you will be asked where you want to store the backup key. This is a file that has to be used with the BitLocker program in order to decrypt the data in the event you forget the password.
I hope this answered some questions...