LXer: Encrypted Containers Without TrueCrypt
 

Published at LXer:

A lot of people use TrueCrypt to create virtual drives/containers to encrypt files, and it works wonders when you’re using Windows, because Windows has no built-in support for such technology. However, in the world of Linux, we’ve been fortunate to have this for a vast amount of time!

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Just one issue: there's no point in partitioning the file via /dev/loop0, because the next step just overwrites it. Formatting /dev/mapper/sometest is where the encrypted mapping is formatted, and that's the important part.