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If my PC is stolen are the files in my dropbox viewable to anyone who reads the harddrive they are stored on
If the data (or places where they sit on) are not encrypted somehow: Yes.
Think of it this way.... ignore Dropbox for a moment... are the rest of your files visible? If so then yes Dropbox is.
Dropbox does not do anything special to the files/folders on your machine other than sync them.
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