9:09 p.m. on August 29, 2011 (EDT)
I would suggest you read the 4-part series on "What's in your water?" that I wrote here on Trailspace a couple years back. The basics are still the same, only that there are a few different filters and some companies have merged, been taken over, etc.
The water need only be made potable for drinking. It does not have to be pure or sterile unless you are doing serious surgery (if you do not know the medical meanings of "potable", "pure", and "sterile", get a good wilderness medicine text and look them up). Unfortunately, the three terms are used interchangeably in the filter ads.
Most filters have a pore size (2 micron) that is adequate to remove bacteria and protozoa and their cysts (giardia, etc).
Some filters use an iodine resin (the older version of Katadyn's PUR, for example, or the Katadyn "bottle with filter straw" for another) or have an iodine resin attachment.
There are a few filters that have a submicron pore size (as small as 0.2 micron) that will filter out viruses (generally ceramic filters - First Need and Katadyn have versions, but the ceramic filters are much more expensive, though they can be cleaned in the field).
Prefilters help reduce clogging, as does letting the water settle overnight.
Halogens will kill viruses and most bacteria and protozoa - except that the treatment time is very dependent on temperature and turbidity, and in any case takes a long time (4+ hours for Chlorine dioxide, as mentioned above, 10 min for household bleach that is straight sodium hypochlorite with no additives, 20-30 min for iodine) - but be aware that these numbers are for 20C or warmer, and encysted protozoa will survive a very long time against halogens.
Heating the water above "pasteurization temperature" (155F/70C) wil make the water potable. It does not have to be at a full rolling boil for 10 minutes, as you will often read on internet postings.You will be boiling the water you use for cooking anyway, so no need to filter or "chemicalize" the water before preparing your cooked meals.
UV treatment (SteriPen or SODIS) will kill many of the critters. Even though SODIS is the latest "craze", it has been around for many, many decades. It does depend on having a UV transparent container and cloudless day, not under the shade of trees or tall mountains.
NONE OF THESE METHODS will take care of chemical contamination. So be very aware of any agricultural, mining, and industrial operations upstream. In my area (SFBay), there were extensive mercury mines in the Santa Cruz Mountains, notably Almaden Valley (which used to be noted for its fine wines). The chemicals that have leached into the streams have so heavily contaminated the water that all the streams are posted to warn against eating fish caught from the streams.
An activated charcoal filter will remove some (not all) of the agricultural, industrial, and heavy metals, but you better have a testing kit to check the remaining contamination. The PUR water treatment system (a division of Proctor and Gamble that Katadyn did not get in the original break-up of PUR) does remove enough of these contaminants (as well as viruses, bacteria, and protozoa) to make some heavily contaminated water found in 3rd world countries potable to WHO standards.