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1) Smash the hard drive platters as suggested.

2) Encrypt all the data on the hard drive before disposal. However, this may still leave previously deleted data recoverable.

3) Use programs such as Eraser (it is free too) to write over data multiple times.

Option 3 is good for people who want to use their drives for other purposes such as donating them to non-profit organizations, or auctions and the like.