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I have contacted the network and had the phone barred, I had applied a screen lock. I am concerned however if the thief can still access all my numbers, texts, saved passwords and most importantly the pictures/videos of my daughter which were stored to the handset? It terrifies me to think that some horror could access these for all kinds of use.

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    Since it is a Desire HD you should have "HTC Sense", if you log in via the web, I believe you can wipe data from the phone? As for what data (taking a stab here)... assuming they've gotten access, I guess any of the apps/sites you have already logged in. Also I assume anything on the SD Card is accessible (they can insert it into a computer and read the contents of the card) – pyko Nov 28 '11 at 3:36
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If the data was not encrypted: everything.

The data on the removable SD-card can be easily accessed, just like a lost USB-Memory-Stick. The internal flash storage can also be read out via some, admittedly sophisticated but practical possible, approaches. AFAIK no Data that you sync with the Google cloud is encrypted.

It's always wise to install some remote wipe tool, like pyko said. Even if they are not foolproof and can not provide a "secure delete" functionality, they provide some security and raise the bar to read out your data.

Hint: The AN.SX security tag provides some further related information for such cases.

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Have you tried Plan B? You can install it from the market after you've lost your phone and use it to find it's current location.

For your next phone, I would recommend Cerberus - I reviewed a bunch of security apps, and it's definitely the clear winner.

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