Hey guys,
I work at Stanford right now so maybe I can shed some light on the topic since people have been talking about it around the clinic.
Yes, they stole the laptop with the employee info, but as far as I understand the thief just wanted the laptop- not the identity information- so it's unlikely they'll even know what to do with all that info.
I don't think it applies to med students, I believe it was an HR laptop so unless you wee employed at Stanford it shouldn't be much of a problem. I believe they sent that email to most people who were affiliated with the school just to cover their bases (for example, I got the email but I was hired after that date). So, if you just applied there, I wouldn't worry about it at all.
As for the rest of you guys, who worked for Stanford during that time, you could do that identity theft protection thing or trust that the administration is taking care of problems. I believe they're being pretty careful about their employee information now and are taking special measures to protect people's identity.
Hope that helps!