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..., and for electromagnetic radiation (x-rays, gamma rays) lead is a good, dense choice.
More important, Gamma radiation is less dangerous as other radiations, because it has a lower chance to interact with you - what passes meters of concrete doesn't really notice a human. It requires a lot of gamma ray flux to harm humans, and the radiation drops by the inverse square law automatically.
I've heard that thermoelectric conversion is seriously inefficient (something like 1%). Is this true?
Not for nuclear reactors, I remember it getting more effective with higher power densities. 10-20% are possible with thermionic converters.
[ame="http://en.wikipedia.org/wiki/Thermionic_converter"]Thermionic converter - Wikipedia, the free encyclopedia[/ame]
A radioisotopethermalgenerator that just uses decay heat, can't power such a converter well, a nuclear fission reactor has no problems.