Yes, updated the original post, posted new initrd.gz.1) do the insmods inside the test for encryption; no need to load these modules if there is no encrypted pup_save.
Clarified the dialog in the Encrypt-pupsave script, uploaded new Encrypt-pupsave to original post.2) In the dialog that asks for a password, I started typing the password before bringing up the xterm. The dialog should indicate that by pushing the (OKAY?) button you will be bringing up the xterm in which the password will be entered.
I'd like to do that, but losetup handles the password set-up. Oh, and losetup calls it "Password". I agree, "passphrase" would be more accurate. During boot if you enter the wrong password, You'll be prompted again to enter it.3) Then, when entering the password (call it "passphrase" everywhere, if it isn't already), you should ask for it twice and then compare, as normal new-password dialogs go.
Yes, it quite strong, but quite a bit slower than AES128. So this is using AES128. Aes128 is very good too. A dictionary attack seems to be the only option for an attacker. So your password is your biggest weakness. Since it a loop-back device with a known filesystem built on it, I suppose you could narrow down your possibilities for an attack. And as mentioned in an earlier post you swap file could be exploited. But for personal use these seem very very unlikely.is this aes256 encryption pretty strong?